Section 16

In plain English

A business seller must supply goods of merchantable quality: as fit for their usual purposes as is reasonable to expect. This excludes defects shown to the buyer, or that the buyer's check should reveal, before the contract. Goods must also be reasonably fit for any purpose the buyer makes known, unless the buyer does not reasonably rely on the seller.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

(1)

Except as provided by this section and section 17

Impliedterms and subject to any other law, there is no implied condition or

:~~~~~~ality warranty about the quality or fitness for any particular purpose of goods supplied under a contract of sale.

(2)

Where the seller sells goods in the course of a business, there is an implied condition that the goods supplied under the contract are of merchantable quality, except that there is no such condition -

Sale of Goods

(a)

as regards defects specifically drawn to the buyer's attention before the contract is made; or

(b)

if the buyer examines the goods before the contract is made, as regards defects which the examination ought to revel.

(3)

Where the seller sells goods in the course of a business and the buyer, expresslyor by implication, makes known -

(a)

to the seller; or

(b)

Where the purchase price or part of it is payable by instalments and the goods were previously sold by a credit broker to the seller, to that credit-broker, any particular purpose for which the goods are being bought, there is an implied condition that the goods supplied under the contract are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplies, except where the circumstances show that the buyer does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the seller or credit-broker.

(4)

An implied condition or warranty about quality of fitness for a particular purposes may be annexed to a contract of sale by usage.

(5)

The preceding provisions of this section apply to a sale by a person who in the course of a business is acting as agent for another as they apply toa sale by a principal in the course of a business, except where that other is not selling in the course of a business and either the buyer knows that fact or reasonable steps are taken to bring it to the notice of the buyer before the contract is made.

Sale a/Goods

CAP. 170 15

(6)

Goods of any kind are of merchantable quality within the meaning of subsection(2) if they are as fit for the purpose or purposes for which goods of that kind are commonlybought as it is reasonable to excepthaving regard to any descriptionapplied to them, the price (if relevant)and all the other relevantcircumstances.

Report

Read on from s 17

Part III

Effects of the Contract

Read on from Part III

Part IV

Performance of the Contract

Read on from Part IV

Part V

Rights of Unpaid Seller Against the Goods

Read on from Part V

Part VI

Read on from Part VI

Part VII

Supplement Ary

Read on from Part VII