Page 157 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes 7. M asked for a bottle of Stone’s Ginger Wine at F’s shop which was licensed for the sale of
wines. While M was drawing the cork, the bottle broke because of defect in the glass and
M was injured. Can M claim damages for the injury?
[Hint: Yes, as the bottle is not of merchantable quality and there is a sale of goods by
description (Secs. 15 and 16 (2) ; Morelli vs.. Fitch and Gibbons)].
8. A seller agrees to supply to the buyer timber of 1/2” thickness for being made into cement
barrels. The timber actually supplied varies in thickness from 1/2” to 5/8”. The timber is
merchantable and commercially fit for the purpose for which it was ordered. The buyer

rejects the timber. Is this action justifi ed?
[Hint: Yes (Sec. 15)]
9. The sale of pure ghee was warranted only equal to sample. The ghee tendered corresponded
to the sample, but was adulterated with 25% groundnut oil. Are the buyers bound to
accept?
[Hint: No (Sec. 17).]
10. A lady buys synthetic pearls for a high price thinking that they are natural pearls. The
seller does not correct her mistake. Has she any remedies against the seller? Would your
decision be different if the lady had told the seller; “I think they are natural pearls and,
therefore, agree to buy them at your price,” and the seller was silent?
[Hint: The lady has no remedy against the seller as the doctrine of caveat emptor applies in
this case. [In the latter case, she can void the contract as there is a breach of condition as to
quality (Sec. 16 (1).]
11. A wholesale dealer in soaps agrees to sell and deliver two cases of ‘Luxury’ toilet soap to a
sub-dealer but delivers that quantity of ‘Luxury’ washing soap. What are the rights of the
sub-dealer?

Answer : Self Assessment

1. False; 2. True; 3. True;
4. True; 5. False; 6. False;
7. True; 8. False; 9. True;

10. True

15.8 Further Readings

Books G. Vijayaragavan Iyengar (2007), Introduction to Banking, Excel Books, New Delhi,
India.
S.S. Gulshan, Business Law, Third Edition, 2006, Excel Books, New Delhi.
S.S. Gulshan, Mercantile Law, Third Edition, 2006, Excel Books, New Delhi.

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