Which of the following are true about conditions according to the Sale of Goods Act?

(A) Title

(B) Description

(C) Quiet possession

(D) Encumbrances

Choose the correct answer from the following options:

Correct option is D

· Title (A) – True: Under the Sale of Goods Act, one key condition is that the seller must have a valid title to the goods being sold, i.e., the ownership rights must transfer to the buyer without dispute.
· Description (B) – True: Goods must correspond to the description provided by the seller. If the goods fail to match the description, the buyer may reject them.
· Quiet possession (C) – False: Quiet possession is a warranty, not a condition. It guarantees that the buyer can enjoy the goods without interference.
· Encumbrances (D) – False: Encumbrances are also treated as a warranty, meaning the goods must be free of any legal claims or charges unless disclosed.
Information Booster:
1. Conditions vs. Warranties in the Sale of Goods Act:
· Condition: A fundamental stipulation, the breach of which allows the buyer to terminate the contract and claim damages.
· Warranty: A subsidiary stipulation, the breach of which entitles the buyer to claim damages but does not terminate the contract.
2. Examples of Conditions:
· The seller must have ownership (Title).
· Goods must match the agreed-upon description.
Additional Knowledge:
1. Quiet Possession as a Warranty:
· The buyer is assured peaceful possession of the goods, meaning no third party should have a legal claim to interfere with the buyer’s enjoyment of the goods.
2. Encumbrances as a Warranty:
· Goods must not have undisclosed financial or legal claims. If there are encumbrances, they must be resolved by the seller.