Prod. vol.17 no.3 São Paulo Sept./Dec. 2007

http://dx.doi.org/10.1590/S0103-65132007000300003 

Product reliability and warranty: an overview and future research

 

Confiabilidade e garantia de produto: visão geral e pesquisas futuras

 

 

D.N.P. Murthy

University of Queensland

 

 

ABSTRACT

Reliability and warranty are very important in the context of new products. This paper gives an overview of product reliability and warranty and discusses some issues and challenges for future research.

Key words: Products, reliability, warranty, research.

RESUMO

Confiabilidade e garantia são muito importantes no contexto de novos produtos. Este artigo apresenta uma revisão geral sobre confiabilidade e garantia de produto e discute algumas questões e desafios para pesquisas futuras.

Palavras-chave: Produtos, confiabilidade, garantia, pesquisa.

 

 

INTRODUCTION

Since the industrial revolution started new products have been appearing at an ever increasing pace. The complexity of the products has increased significantly to meet the ever increasing needs and expectations of consumers. Products degrade with age and/or usage and fail when they are unable to carry out their normal functions. Reliability theory deals with various issues such as the understanding of the degradation mechanism, the design of reliable products and the operation of unreliable products.

Consumers need assurance that the product will perform satisfactorily over the useful life of the product. In addition, the legislations are getting more stringent to protect consumer interests. Manufacturer have responded to these challenges by offering warranties and extended warranties. A warranty is a legal contract which requires the manufacturer to either rectify or compensate for all failures occurring within the warranty period. There are many different aspects to warranty and these have been studied by researchers from many different disciplines.

Offering a warranty results in additional costs (referred to as warranty servicing costs or simply warranty costs) to the manufacturer as all failures under warranty need to be either rectified or compensated by the manufacturer. The warranty costs depend on the reliability performance of the product. This in turn depends on several factors some under the control of the manufacturer (such as the decisions made during the design and development of the product) and others under the control of the consumer (such as the usage intensity, operating environment and maintenance). The warranty servicing costs vary from 2-10% of the sale price depending on the product and the manufacturer. As a result, warranty and product reliability are very important in the context of new product development.

Both warranty and reliability have received a lot of attention over the last fifty years. This paper gives a brief overview of both reliability and warranty and discusses some new issues and the challenges for future research. The outline of the paper is as follows. Section Product Reliability: An Overview deals with an overview of product reliability and Section Warranty: An Overview with warranty. In each section we highlight the important issues and give a historical perspective. Section New Issues and Challenges: Topics for Future Research deals with some issues and challenges as part of future research into reliability and warranty. We conclude with some comments in Conclusions Section.

 

PRODUCT RELIABILITY: AN OVERVIEW

Reliability of a product conveys the concept of dependability, successful operation or performance and the absence of failures. It is an external property of great interest to both manufacturer and consumer. Unreliability (or lack of reliability) conveys the opposite. A more technical definition is the following:

The reliability of a product (system) is the probability that the product (system) will perform its intended function for a specified time period when operating under normal (or stated) environmental conditions. (BLISCHKE; MURTHY, 2000)

The reliability of a product gets determined by the decisions made during the pre-production stages (Front-end, Design, Development) and the production stage of the product life cycle. Murthy et al. (2007a – c) deal with reliability decision making during the Front-end (or Feasibility) and the Design and Development stages of new product development.

Reliability: different notions

The design reliability depends on reliability specification at the component level. The reliability of the produced item can differ from the design reliability due to assembly errors and component non-conformance. The reliability of produced items is the "inherent" reliability of the product. The product needs to be transported to the market, and often stored for some time, before it is sold. The reliability at sale for a unit depends on the mechanical load (resulting from vibrations during transport), the impact load (resulting from mishandling), the duration of storage and the storage environment (such as temperature, humidity etc). As a result, the reliability at sale can differ from the inherent reliability. Once an item is sold, it can be either stored for an additional time (if the unit is used as a spare) or put into operation immediately. The reliability performance of a unit in field depends on the length and environment of storage and on several other operational factors such as the usage intensity (which determines the load – electrical, mechanical, thermal, chemical – on the unit), usage mode (whether used continuously or intermittently) and operating environment (such as temperature, humidity, vibration, pollution etc) and in some instance on the human operator. The reliability performance in operation is often referred to as "field reliability". Figure 1 (from MURTHY et al., 2007d) shows how these different reliability notions are sequentially linked and the factors that affect them.

 

 

Reliability theory

Reliability theory deals with the interdisciplinary use of probability, statistics and stochastic modelling, combined with engineering insights into the design and the scientific understanding of the failure mechanisms, to study the various aspects of reliability. As such, it encompasses the following topics1.

Reliability modelling: Reliability modelling deals with model building to obtain solutions to problems in predicting, estimating and optimising the survival or performance of an unreliable system, the impact of the unreliability, and actions to mitigate this impact.

Reliability analysis: Reliability analysis can be divided into two broad categories: (i) Qualitative and (ii) Quantitative. The former is intended to verify the various failure modes and causes that contribute to the unreliability of a product or system. The latter uses real failure data in conjunction with suitable mathematical models to produce quantitative estimates of product or system reliability.

Reliability engineering: Reliability engineering deals with the design and construction of systems and products, taking into account the unreliability of its parts and components. It also includes testing and programs to improve reliability. Good engineering results in a more reliable end product.

Reliability science: Reliability science is concerned with the properties of materials and the causes for deterioration leading to part and component failures. It also deals with the effect of manufacturing processes (e.g. casting, annealing) on the reliability of the part or component produced.

Reliability management: Reliability management deals with the various management issues in the context of managing the design, manufacture and/or operation of reliable products and systems. Here the emphasis is on the business viewpoint, as unreliability has consequences in cost, time wasted, and, in certain cases, the welfare of an individual or even the security of a nation.

Historical perspective

Prior to World War II, the notion of reliability was largely intuitive, subjective and qualitative. The use of actuarial methods (involving statistical techniques) to estimate survivorship of railroad equipment began in the early part of the twentieth century (NELSON, 1982, p. 2). In the late 1930's, extreme value theory was used to model fatigue life of materials and was the forerunner to later probabilistic developments.

A more quantitative (or mathematical) and formal approach to reliability grew out of the demands of modern technology and particularly out of the experiences in the second world war with complex military systems (BARLOW; PROSCHAN, 1965, p.1). Since the appearance of this classic book, the theory of reliability has grown at a very rapid rate, as can be seen by the large number of books2 and jounals3 that have appeared on the subject.

Barlow (1984) deals with a historical perspective of mathematical reliability theory up to that time. Similar perspectives on reliability engineering in electronic equipment can be found in Coppola (1984); on space reliability technology in Cohen (1984); on nuclear power system reliability in Fussel (1984) and on software reliability in Shooman (1984).

 

WARRANTY: AN OVERVIEW

A warranty is a manufacturer's assurance to a buyer that a product or service is or shall be as represented. It may be considered to be a contractual agreement between buyer and manufacturer (or seller) which is entered into upon sale of the product or service. A warranty may be implicit or it may be explicitly stated.

Warranty classification

There are many different types warranty policies and a classification of these can be found in Blischke and Murthy (1994 and 1996). They can be divided into different categories as indicated below.

Involving reliability improvement or not Single item or group of items (cumulative warranty) One-dimensional (limit on age) or two-dimensional (limits on age and usage) Renewing or non-renewing Base or extended

Base warranties

Base warranty is integral to the sale and is factored into the sale price. Most standard products are sold with one of the following two warranty policies.

1-D Free Replacement Warranty (FRW) policy

The manufacturer agrees to repair or provide replacements for failed items free of charge up to a time W (the warranty period) from the time of the initial purchase. The warranty expires at time W after purchase.

1-D Pro-Rata Rebate Warranty (PRW) policy

The manufacturer agrees to refund a fraction of the purchase price should the item fail before time W (the warranty period) from the time of the initial purchase. The buyer is not constrained to buy a replacement item. The refund depends on the age of the item at failure (X) and it can be either linear or a non-linear function of (W – X), the remaining time in the warranty period and the sale price.

2-D Free Replacement Warranty (FRW) policy

The manufacturer agrees to repair or provide a replacement for failed items free of charge up to a time W or up to a usage U, whichever occurs first, from the time of the initial purchase. W is called the warranty period andU the usage limit. The warranty region is a rectangle in a 2-dimensional plane with age along one axis and usage along the other axis.

Cumulative warranties

Cumulative warranties are for items are sold as a single lot of n items and the warranty refers to the lot as a whole. The policies are conceptually straightforward extensions of the non-renewing free replacement and pro-rata warranties discussed previously. Let Xi denote

the service life of item i, i = 1, 2, ... and Sn   Xi.

Cumulative FRW policy (GUIN, 1984)

A lot of n items is warranted for a total (aggregate) period of nW. The n  items in the lot are used one at a time. If Sn < nW, free replacement items are supplied, also one at a time, until the first instant when the total lifetimes of all failed items plus the service time of the item then in use is at least nW.

Reliability Improvement Warranties

Reliability Improvement Warranty (RIW) policies are offered with complex systems intended for long use. The basic idea is to extend the notion of a basic consumer warranty (usually the FRW) to include guarantees on the reliability of the item and not just on its immediate or short-term performance. These often include a guaranteed MTBF as a part of the warranty contract.

Reliability Improvement Warranty policy (GANDARA ; RICH, 1975)

The manufacturer agrees to repair or provide replacements free of charge for any failed parts or units until timeW after purchase. In addition, the manufacturer guarantees the MTBF of the purchased equipment to be at leastM. If the computed MTBF is less than M, the manufacturer will provide, at no cost to the buyer, (1) engineering analysis to determine the cause of failure to meet the guaranteed MTBF requirement, (2) Engineering Change Proposals, (3) modification of all existing units in accordance with approved engineering changes, and (4) consignment spares for buyer use until such time as it is shown that the MTBF is at least M.

Extended warranties

The base warranty is integral to the sale and as such factored into the sale price and the customer does not pay anything extra. Extended warranties are optional which customers purchase by paying an extra amount. These are offered by several parties – manufacturers, retailers and independent agencies such as insurance companies etc.

Warranty costs

There are several different notions of warranty costs. These include (i) warranty cost per unit, (ii) warranty cost over some interval (for example, product life cycle) and (iii) warranty costs per unit time (warranty cost rate). As mentioned earlier, the warranty costs depend on product reliability and the product usage. Figure 2 is simplified characterisation for determining the warranty cost per unit. Blischke and Murthy (1994) discuss the expected warranty costs for a wide variety of warranty policies.

 

 

The warranty cost as a fraction of the sale price can vary from 1 – 10% depending on the product and the manufacturer. The total warranty costs for General Motors and Ford were over 4 billion dollars each for 2006. Through proper servicing logistics, these costs can be reduced. Murthy et al (2004) deals with warranty logistics. One particular issue is the choice between repair versus replace for a failed item under warranty. Murthy and Jack (2007a) deal with this topic.

Extended warranties are similar to outsourcing of maintenance and this topic is examined in Murthy and Jack (2007b).

Issues in warranty

Because of the diversity of purpose and application, product warranty has received the attention of researchers from many diverse disciplines4. As a result, warranty issues have been considered from the following different perspectives

Historical: origin and use of the notion Legal: court action, dispute resolution, product liability Legislative: Magnusson-Moss Act; Federal Trade Commission, Warranty requirements

in government acquisition (particularly military) and TREAD Act in the USA and the latest EU legislation

Economic: market equilibrium, social welfare Behavioral: buyer reaction, influence on purchase decision, perceived role of

warranty, claims behavior Consumerist: product information, consumer protection Engineering: design, manufacturing, quality control, testing Statistics: data acquisition and analysis, data-based reliability analysis Operations Research: cost modeling, optimization Accounting: tracking of costs, time of accrual

Marketing: assessment of consumer attitudes, assessment of the marketplace, use of warranty as a marketing tool, warranty and sales

Management: integration of many of the previous items, determination of warranty policy, warranty servicing decisions

Societal: public policy issues

As a consequence, the literature on warranty is very large. Blischke and Murthy (1996) deal with these issues in detail. Administration of warranties in the context of government acquisition is discussed in Brenan (1994) and Murthy and Blischke (2005) deal with warranty management in the context of new product development.

Historical perspective

The origin of the word warranty is interesting. In a study of the origin and history of the concept, Loomba (1996) states:

"The words warranty and guarantee, known to linguists as "doublets," are derived from same original source but traveling to today's English language by different routes. The origins of the word warranty can be traced back to the Old North French word warant and warantie, to the Old High German word werento meaning "protector". During the Middle Ages, the original expressions used included hoc ex condicione, warrantizavit, promisit, and sub tali plevina."

The earliest record of warranty can be found in the Babylonian and Assyrian tablets of the twenty-first century B.C. Since then it has evolved over time and in many different societies. Some of the key milestones in this evolution were:

i. Roman laws of the fifth century B.C.,

ii. Bavarian laws at the start of the Christian era,

iii. Jewish commercial laws of the second century A.D.,

iv. Hindu religious laws of the fifth century,

v. Islamic laws of the eighth century,

vi. Egyptian formularies of a slightly later period,

vii. Scattered Russian codes of the early tenth century, and

viii. The customs of the church rule of medieval times and customs of the English borough.

The start of the Industrial Revolution in the sixteenth century brought a major change to manufacturing. Components were produced by different businesses and often no single entity was responsible for the product as a whole. Until the first half of the nineteenth century, caveat emptor was the rule and sellers rarely offered any sort of formal warranty on their goods. In the late nineteenth century, warranties were treated as standardized contracts with extremely limited scope5.

During the twentieth century, consumer movements have had an impact on warranty. There have been three consumer movements and these are discussed in Blischke and Murthy

(1996). The third consumer movement began after the end of World War II and gained momentum in the 1960s. Because of growing concerns for buyers' protection, the notion of express warranty was augmented by another concept, "implied warranty," which basically states that a product must be capable of performing its intended function when used properly and under normal operating conditions. By 1952, every state in the United States except Louisiana adopted what is termed the Uniform Commercial Code (UCC). Several forms of legislation have been enacted during the past few decades to regulate warranties on various products, the most notable such legislation being the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act of 1975 and the TREAD Act of 19996.

 

NEW ISSUES AND CHALLENGES: TOPICS FOR FUTURE RESEARCH

A framework to study warranty and reliability is given in Figure 3 (from MURTHY; BLISCHKE, 2005). Some of the new issues are the following:

 

 

Outsourcing of design: Here the some component designs are outsourced. If items are not designed properly, it can result in high warranty claims and significantly impact the bottom line of the manufacturer.

Outsourcing of component manufacture: The warranty costs to the manufacturer of the product can increase significantly if the fraction on nonconforming components is high. There is a trend towards the manufacturer passing on these costs to the component suppliers.

Warranty servicing: Here the warranty servicing is carried out by an independent agent under a contract. Poor servicing affects customer satisfaction and in turn, the

reputation of the product and the manufacturer. Also, there are potential problems of over-servicing, fraudulent claims etc.

Flexible (base and extended) warranties: This is to meet the varying usage and risk profiles of consumers.

We now briefly discuss some potential topics for future research.

Warranty servicing and game theory

Murthy and Ashgharizadeh (1999) deal with maintenance outsourcing as a Stackelberg game formulation. Here the service agent (providing the maintenance) is the leader and the owner of the product (and customer for the maintenance service) is the follower. The service agent provides a set of service options Ai(i), 1 < i < n, and the customer chooses the best option to optimize the customer's goal. This generates the optimal response function A*(1,2,...,n) as shown in Figure 4. Using this, the service agent then optimally selects the decision variables to maximize the goals of the service agent.

 

 

As mentioned earlier, extended warranties are closely related to maintenance out-souring. The study of warranty servicing from a game theoretic viewpoint is an interesting topic for future research.

Warranty management and agency theory

The framework in Figure 3 indicates three cases involving two parties – manufacturer and an external party. These are: (i) External design houses, (ii) external component suppliers and, (iii) independent warranty service agents. The manufacturer delegates tasks to an external party and the goals (or objectives) of the two are different.

Agency theory deals with the relationship that exists between two parties (a principal and an agent) where the principal delegates work to the agent who performs that work and a contract defines the relationship. Agency theory is concerned with resolving two problems that can occur in agency relationships.

The first problem arises when the two parties have conflicting goals and it is difficult or expensive for the principal to verify the actual actions of the agent and whether the agent

has behaved properly or not. The second problem involves the risk sharing that takes place when the principal and agent have different attitudes to risk (due to various uncertainties).

According to Eisenhardt (1989), the focus of the Agency theory is on determining the optimal contract, behaviour versus outcome, between the principal and the agent. Agency theory has also been applied in many different disciplines. For an overview, see Acekere (1993). The different issues involved are indicated in Figure 5 and discussed briefly.

 

 

Moral hazard: Moral hazard refers to lack of effort (or shirking) on the part of the agent. The agent does not put in the agreed-upon effort because the objectives of the two parties are different and the principal cannot assess the level of effort that the agent has actually used.

Adverse selection: Adverse selection refers to any misrepresentation of ability by the agent and the principal is unable to completely verify this before deciding to hire the agent.

Information: To counteract adverse selection, the principal can invest in getting information about the agent's ability. One way of getting the desired information is by contacting people for whom the agent has provided service in the past.

Monitoring: The principal can counteract the moral hazard problem by monitoring the actions of the agent. Monitoring provides information about the agent's actual actions.

Information asymmetry: There are several uncertainties that affect the overall outcome of the relationship. The two parties, in general, will have different information to make an assessment of these uncertainties and will also differ in terms of other information.

Risk: This results from the different uncertainties that affect the outcome of the relationship. The risk attitude of the two parties, in general, will differ for a variety of reasons. A problem arises when this disagreement is over the allocation of risk between the two parties.

Costs: There are various kinds of costs for both parties. Some of these depend on the outcome (which is influenced by uncertainties) but also in acquiring information, monitoring and the administration of the contract. The heart of the principal-agent theory is the trade-off between (i) the cost of monitoring the actions of the agent and (ii) the cost of measuring the outcomes of the relationship and the transferring of risk to the agent.

Contract: The design of the contract that takes into account the issues discussed above is the challenge that lies at the heart of the principal-agent relationship.

The literature on Agency theory is vast. Bulk of them deal with study of various issues using static models. The study of out-sourcing of (i) design, component manufacturing and (iii) warranty servicing using Agency theory require dynamic model formulations. In addition, RIW will be important in the context of design outsourcing and cumulative warranties in the context of component outsourcing. There is lot of scope for new research in this area.

Flexible warranties

One can define several different notions of flexibility in warranties. A key issue with each notion is the pricing of the warranty. These needs to take into account the response function of consumers. A simple model for flexible warranty is proposed in Jack and Murthy (1977) and there is scope for lot more new research.

Reliability modelling and warranty cost analysis

As discussed in Section Product Reability: an overview, there are several different notions of reliability – design reliability, inherent reliability and field reliability. One needs to build models that link inherent reliability to design reliability and the affecting factors and similarly for the link between field reliability and inherent reliability. Murthy and Jiang (2007) deals with one such model formulation involving Weibull distributions.

The warranty cost analysis based on field reliability then allows one to assess the impact of these affecting factors on the warranty costs and optimal cost effective strategies to reduce this impact.

Analysis of warranty data

Warranty data (for products sold with either one- or two-dimensional warranties) provide useful information to estimate field, inherent and design reliabilities. The literature deals mainly with field reliability estimation under different scenarios (see, KARIM; SUZUKI, 2005). The extension of these to estimate inherent and design reliabilities is a potential topic for new research.

 

CONCLUSIONS

In this paper we have discussed some new issues and challenges in the areas of reliability and warranty and suggested some topics for research in the future.

 

Notes

1. Blischke and Murthy (2000) deal with all the different issues in an integrated manner.

2. Some books deal with one issue (for example, estimation, accelerated testing etc) in detail and others deal with more than one issue.

3. These include the following: IEEE Transactions on Reliability, Reliability Engineering & System Safety, Microelectronics Reliability, Quality and Reliability Engineering, International Journal of Reliability and Applications and International Journal of Quality, Reliability and Management. Papers on reliability can also be found in Operational Research, Statistics, Engineering and other journals.

4. See Djamaludin et al (1996) for a bibliography listing over 1500 papers through 1996. Reviews of the more recent literature on warranty can be found in Thomas and Rao (1999) and Murthy and Djamaludin (2002).

5. Vance (1911) discusses the history of the development of the warranty in Insurance Law.

6. An excellent discussion of express and implied warranties, the Magnuson-Moss Act and related issues may be found in "A Businesspersons Guide to Federal Warranty Law," available at http://www.ftc. gov/bcp/conline/buspubs/warranty.htm

 

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About the author D.N.P. Murthy Division of Mechanical Engineering The University of Queensland, Brisbane Q 4072 – Australia Email : p.murthy@uq.edu.au

 

 

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Japan is home to the world's oldest lots of things. Sudo Honke, the world's oldest sake brewer, has been around since 1141. Before being absorbed into a subsidiary in 2006, theoldest continuously operating familybusiness in the world was Kongo Gumi, which built temples, and had been doing so for 14 centuries.Oct 20, 2014

Company DescriptionS.Sardar Furniture was established in Nov 1947. Its one of the oldest furniture manufacturing

company in Islamabad. S.Sardar Furniture is known for its high quality furniture. We deal in

office furniture, domestic furniture and customized furniture.

8 June 2014:

Under the Consumer Guarantees Act, your consumer rights are expressed as a series of "guarantees" that a seller automatically makes to you when you buy any goods or services ordinarily purchased for personal use. In this guide, we explain what those rights are, and what to do if you think your rights have been breached.

Those "goods" include pretty much everything in and around the home – from appliances to vehicles, furniture to food. Gas, electricity, water and computer software are also covered.

"Services" include things done by tradespeople like plumbers and painters, professionals like dentists and lawyers, after-sales and repair services from shops, and all the services you get from insurers, petrol stations, travel agents ... in general, if you pay for it, it's covered.

The Act applies to gifts. If you're given something, you have the same rights as if you bought it yourself, and can seek redress directly for any problem. It also applies to goods that you hire.

What it doesn't coverThe Act only applies if you buy goods or services from sellers "in trade". This means it does not cover private sales. However, it does cover goods sold in second-hand shops and sales, and goods sold over the internet by New Zealand businesses.

The Act does not cover the purchase of houses, although it does cover house repairs. Nor does it cover goods or services usually bought for commercial use, such as medical equipment or the installation of industrial machinery.

No contracting outSellers cannot exempt themselves from their obligations under the Act, even if they put it in a contract. So, if a retailer puts up a sign saying "No refunds or exchanges" it is meaningless. You still have full rights under the Act.

This also means guarantees and warranties cannot state "No consequential losses are covered," because attempts to contract out of the Act may mislead consumers about their rights.

The Commerce Commission may use the Fair Trading Act to prosecute traders who attempt to contract out of the Act.

However, sellers can contract out of the Act when goods are used for business. When a product is ordinarily purchased for domestic use but is also used for business purposes – like a mobile phone, for example – the Act will allow a seller to contract out of the Act. Any contracting out must be done in writing at the point of sale.

The guaranteesUnder the Act, your consumer rights are expressed as a series of "guarantees" that a seller automatically makes to you when you buy any good or service ordinarily purchased for personal use.

GoodsRetailers and other such suppliers guarantee their goods will:

Be of acceptable quality (see definition below). Be fit for a particular purpose that you asked about. Match the description given in advertisements or sales brochures, or by the sales

assistant. Match the sample or demonstration model. Be owned by the consumer, once purchased. Be a reasonable price, if no price or pricing formula has been previously agreed. Be delivered on time, where the supplier is responsible for delivery. When no time is

agreed, delivery must still be within a reasonable time.Manufacturers (the definition includes importers) in New Zealand guarantee that:

Spare parts and repair facilities will be available for a reasonable time. They will honour any written warranty that comes with their products. Goods are of acceptable quality. Goods match their description.

ServicesService providers guarantee their services will be:

Performed with reasonable care and skill. Fit for the particular purpose they were supplied for. Completed within a reasonable time. A reasonable price, if no price or pricing formula has been previously agreed.

Acceptable qualityThis means goods:

Do what they are made to do. Are acceptable in appearance and finish. Are free from minor defects. Are safe and durable.

The Act's terms "reasonable" and "acceptable" are deliberately open-ended. It depends on what a reasonable consumer would think was acceptable based on the nature of the goods, the price, any statements that have been made about the goods, and the nature of the supplier and context in which the goods are supplied. A concert violin is required to meet a higher standard than a child's cheap instrument. Ultimately a tribunal referee or a judge may have to decide what is reasonable or acceptable in the circumstances.

If a defect was pointed out to you before you bought the good, then it doesn't count towards making it unacceptable.

Putting it rightIf something goes wrong, you have the right to insist that the seller or service provider fixes things.

Generally speaking, this means the retailer who sold you the goods or services must sort out the problem. If the stitching comes apart on your fairly new shoes, you don't have to track down the manufacturer or importer, you simply take them back to the shop.

If the problem is minor, and can be fixed, the retailer can choose to either repair, replace or refund.

A service provider must fix the problem within a reasonable time.

If the problem can't be fixed, or can't be put right within a reasonable time, or is substantial, you can:

Reject the product and choose a replacement of the same type and similar value or a full refund of your purchase price; or

Claim compensation for any drop in the value of the product or service. Cancel the service contract, pay for any satisfactory work already done, and get

someone else to finish the repairs; or Have it repaired elsewhere and recover the costs from the retailer, if they refuse to fix

a faulty product, or fail to do so in a reasonable time.When you have the right to reject the goods, sellers cannot just offer a credit note. If you want a refund, you are entitled to it – by cash, cheque or credit card charge reversal.

Substantial means:

A reasonable consumer wouldn't have bought the goods if they'd known about the fault.

The goods are significantly different from their description, sample or demonstration model.

The goods are substantially unfit for purpose. The goods are unsafe.

Consequential lossIn addition to these rights, consumers may also claim for any reasonably foreseeable extra loss that results from the initial problem. If your new washing machine won't work properly you can claim for laundry costs or the cost of hiring a replacement machine while the first one is being fixed.

If you have to post or courier goods back to be repaired, you don't have to pay for those costs.

The compensation for consequential loss must put you back in the position you would have been in if the goods or service hadn't been faulty.

Guarantees on replacement models

Warranties on replacement products usually only run from the original purchase date.When a faulty product is replaced, any manufacturer's warranty on the product usually runs only from theoriginal purchase date.

So, if a 6-month-old washing machine is replaced because it is faulty, and there was originally a 12-month manufacturer's warranty on it, then this warranty will have 6 months to run on the new machine.

However, the Consumer Guarantees Act applies to the replacement, so you will still have all the rights you're entitled to when buying a new machine.

Manufacturers and importersIf there is a problem you can complain to the manufacturer, if it has an office in New Zealand, or where the goods are imported, to the importer or distributor.

Where there has been a breach of the Act, manufacturers and importers are obliged to:

Pay compensation, and/or pay for any loss in value; and Honour any express warranty they gave which gives the consumer greater protection

than in the Act.Complaining to the manufacturer is useful when, for example, the retailer has gone out of business or is proving hopeless to deal with. But in most cases it should be easier to insist on your rights directly with the retailer.

If a product has parts made by different manufacturers, you can claim against any or all of them. However, in practice your best bet may be to contact the one whose name is on the product.

09 Jun 2014 Fair Trading Act

The Fair Trading Act 1986 protects you against being misled or treated unfairly by traders or shops. The Act prohibits misleading and deceptive conduct, unsubstantiated claims, false representations and certain unfair practices.

It also sets out when information about certain products must be disclosed to consumers, and helps ensure products are safe.

The Act applies to everyone in trade. As well as traders and shops, the Act covers government agencies and state-owned enterprises. Most of the Act does not cover private sales.

The difference between the Fair Trading Act (FTA) and the Consumer Guarantees Act (CGA) is that, in general, the FTA covers claims about products and services before they're bought and the CGA covers the quality of those products and services after they have been bought. (https://www.consumer.org.nz/articles/fair-trading-act),

(https://www.consumer.org.nz/articles/consumer-guarantees-act)

The Murree Brewery Company Ltd. was established in 1860 to meet the beer demand

of British personnel at Ghora Gali near the resort place of Murree.[5]

The Brewery was managed by the family of Edward Dyer. In the 1880s the company established a

further brewery in Rawalpindi and a distillery in Quetta.

Due to scarcity of water in Murree in the 1920s, brewing was mostly transferred to Rawalpindi but

malting continued at Ghora Gali until the 1940s, when this property was sold. This brewery, built in

the Gothic style of architecture, was burnt during the independence of Pakistan in 1947, while the

brewery in Quetta was destroyed in the 1935 Balochistan earthquake. In the 1940s, the controlling

share or interest in the brewery was obtained by the late Mr Peshton Bandhara, who used to run a

liquor business in Lahore prior to the independence of Pakistan. His son, late M.P. Bhandara later

carried on the business and now it is being run by a grandson, Mr Isphanyar Bandhara.

In the 1960s, oak casks were imported from North America, Australia and Spain and the

underground cellars now hold over half a million litres of malt whisky for varying periods of

maturation up to 12 years. Murree brewery produces a generally excellent world class single malt

whisky.

New beer canning and modern bottle filling facility were installed in the 1990s, imported

from Germany. In 2001, the brewery had been temporarily closed for producing too much polluting

waste. Authorities slapped the environmental protection order on the Murree Brewery in Rawalpindi,

Islamabad's twin city.[6]

Rarest Malt Whisky [edit]

In 2007, Murree became muslim world's first brewery to make 20-year-old malt

whisky named Rarest Malt Whisky. But according to law, it cannot be exported and cannot be

consumed by 97% of the population of Pakistan as local law prohibits muslims from drinking alcohol.

However CEO of Murree claims that "99 per cent of his customers are Muslims".[7][8]

Recent growth [edit]

In 1977, the Murree Brewery suffered a significant setback when Zulfikar Ali Bhutto imposed a total

alcohol prohibition in Pakistan, to appease Islamic elements of the electorate. Subsequently the

government of General Zia-ul-Haq amended this law, requiring anyone wishing to consume alcohol

to present credentials demonstrating that they were non-Muslim. The small Christian, Hindu,

and Parsi communities were not large enough to support the enterprise, and production had to be

scaled back.

However, gradual relaxation of the prohibition laws has allowed Murree to introduce variations of

Murree beer, vodka, gin, and whisky. Today, all Murree products are readily available in legal liquor

shops that operate openly in Karachi in places like Zamzama and Defence. It is also available in the

interior of Sindh. Although the consumption of alcohol in public places is still nominally banned, it is

becoming increasingly available in clubs and high-class restaurants. Murree Beer was initially being

produced in Austria for European markets and was available in various Pakistani

and Indian restaurants, an enterprise which has since ceased since 2004. The current CEO,

Isphanyar Bhandara has announced plans to pursue co-brewing with Fosters, but this scheme is still

in development.

The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were

traded on the Calcutta Stock Exchange as early as 1902, and is now the oldest continuing industrial

enterprise of Pakistan and among the top 25 performing public companies by the Karachi Stock

Exchange.

Murree's biggest competitor is the Quetta Distillery, and its products have to increasingly vie with

smuggled brands from the West and India.[9]

In 2013, Murree Brewery opened a franchise in India to a Bangalore-based entrepreneur, allowing

the brewing, bottling and marketing of the beer in India.[10]

REFRENCE:

1.  Murree Brewery Pakistan, Forbidden Bevarage, Isphanyar Bhandara is Zoroastrian | Parsi News

Zoroastrian News

2. Jump up ̂  Murree Brewery Still brewing in a dry land: Pakistan’s Parsi Brewery | Parsi Khabar

3. Jump up ̂  "Alcoholic Drinks in Pakistan". Euromonitor.com. Retrieved 2015-08-04.

4. Jump up ̂  "Alcohol in Pakistan: The prohibition and after - Blogs". Dawn.Com. Retrieved 2015-08-04.

5. Jump up ̂  "Murree Brewery Company Ltd: History". Murree Brewery Company Ltd. Retrieved 7

December 2009.

6. Jump up ̂  "Pollution problem for Pakistan brewery". BBC News. 8 February 2001.

7. Jump up ̂  "Five Of The World's Most Unlikely Whisky Producers". Whisky Distilled. Retrieved 2015-

08-04.

8. Jump up ̂  Wilkinson, Isambard (2007-02-26). "Pakistan brewery produces Muslim world's first 20-

year whisky". Telegraph. Retrieved2015-08-04.

9. Jump up ̂  New Year’s Eve: City too dry and too wet Malik, Sonia; The Express Tribune; December

31, 2010

10. Jump up ̂  "Murree Brewery soon to brew in India". Express Tribune. 30 November 2013. Retrieved 1

December 2013.

Construction and civil engineering companies of Japan Kongō Gumi

Native name 株式会社金剛組

Romanizedname Kongō Gumi

Type Kabushiki Gaisha

Industry Construction

Fate Acquired

Founded 578

Headquarters Osaka, Japan

Parent Takamatsu Construction Group

Topic:

Kongō Gumiis a Japanese construction company which was the world's oldest continuously ongoing independent company, operating for over 1,400 years until it was absorbed as a subsidiary of another larger construction company. Headquartered in Osaka, the once family-owned construction company traced its origins to 578 when one of the skilled- See more at: http://www.linkapedia-civilengineering.com/topics/civil-engineering/kong-gumi/51939862#sthash.xk7yk0KG.dpuf

(http://www.linkapedia-civilengineering.com/topics/civil-engineering/kong-gumi/51939862)

Statutory implied terms - The Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982

~~ Take the quiz on statutory implied terms ~~

~~ Play the dustbin game on the Sale of Goods Act 1979 ~~

~~ Do a word search on the Sale of Goods Act 1979 ~~

~~ Play hangman on the Sale of Goods Act 1979 ~~

Intro

In contracts for the sale of goods and supply of services certain basic provisions are implied by statute in order to provide protection to purchasers. The main provisions derive from the Sale of Goods Act 1979 and theSupply of Goods and Services Act 1982. The Sale of Goods Act protects purchasers where the seller does not have the right to sell the goods(s.12). Where the goods are sold by description there is an implied term that the goods will correspond to that description (s.13). Businesses must ensure that the goods they sell are of satisfactory quality and fit for their purpose (s.14). Where the goods are sold by sample there is an implied term that the goods will correspond to the sample in quality (s.15). Where the goods are supplied along with a service then the Supply of Goods and Services Act 1982 applies. This implies the identical provisions as the Sale of Goods Act in relation to the goods supplied. In addition there are implied terms that the service must be carried out with reasonable care and skill(s.13), that the service will be carried out within a reasonable time(s.14) and where no price is agreed a reasonable price will be paid (s.15).

Sale of Goods Act 1979

Summary

The Sale of Goods Act 1979 provides four main protections for buyers:

1. The seller must have the right to sell the goods ( S.12)

2. Goods sold by description must correspond to the description (S.13)

3. Goods must be of satisfactory quality (s.14)

4. Goods sold by sample, the goods must correspond to the sample in quality (s.15)

The Sale of Goods Act applies to all contracts for the sale of goods, however, s.14 is more limited in its scope in that it only applies where goods are sold in the course of a business. Also where the goods are sold in the course of a business the provisions of the Sale of Goods Act are reinforced with the protection offered by the Unfair Contract Terms Act 1977 which prohibits their exclusion. See further here.

These protections are in the form of statutory implied terms. This means that the Sale of Goods Act will put these terms into all contracts for the sale of goods no matter what the parties themselves have agreed in the terms and conditions of sale. A contract is for the sale of goods provided it is a contract to transfer ownership of goods (as opposed to a hire agreement) and the goods are exchanged for money. This excludes contracts of barter unless money is also given.

The main provisions

1. S. 12 implied terms as to title

S. 12 applies to all contracts for sale of goods so it will cover private sales in addition to where goods have been purchased from a shop or other business.

S.12(1) implies a term that the seller has the right to sell the goods. This covers

situations where the seller is selling stolen goods (whether the actual thief or a subsequent sale in the chain). This term is a condition in all sales.

A buyer who treats the contract as repudiated is entitled to return of the full purchase price even if they have enjoyed use of the goods for some time.

Rowland v Divall [1923] 2 KB 500 (Case summary)

In addition to applying to stolen goods s.12(1) also applies where the seller does not have the right to sell the goods where to do so would be breach of trademark, patent or copyright:

Niblett v Confectioners' Material [1921] 3 KB 387

(Case summary)

s.12(2) (a) implies a term that the goods are free from any undisclosed charge or encumbrance. This applies where for example goods which are still subject to hp terms have been sold without telling the purchaser of the hp agreement or where any other debt has been secured on the goods. This term is only a warranty so whilst the purchaser can claim for any loss caused by the charge or encumbrance they can not end the contract.

S.12 (2)(b) implies a term that the purchaser will enjoy quiet possession of the goods. This acts as an ongoing assurance that no one will interfere with the buyer’s right to possess or use the goods. This term is a warranty.

Microbeads v Vinehurst Road Markings [1975] 1 WLR

(Case summary)

2. S.13 sale by description

s.13(1) provides that where there is a contract for the sale of goods by description, there is an implied term that the goods will correspond with the description.

This section applies where the sale is solely by description. If the buyer sees the actual goods before the sale then s.13 can not be relied upon:

Harlington & Leinster v Christopher Hull Fine Art [1991] 1 QB 564 (Case summary)

S.13 is simply concerned with description and not quality as was made clear in:

Arcos v Ranaason [1933] AC 470                 (Case summary)

Re Moore & Landauer [1921] 2 KB 519 (Case summary)

The term implied by s.13 is a condition in relation to consumer sales but aninnominate

term in relation to non-consumer sales.

3. S. 14 Implied term as to quality

S.14 only applies where the seller sells goods in the course of a business. It therefore does not apply to private sales although there may be an action for breach of an express term or misrepresentation in some circumstances.

The question of whether goods were sold in the course of a business was considered in:

Stevenson v Rogers [1999] 1 All ER 613          (Case summary)

 Liability under s.14 is strict and not dependant of proof of fault on the part of the seller.

 

The relevant parts of s.14 are as follows:

(2) Where the seller sells goods in the course of a business, there is an implied term that the goods supplied under the contract are of satisfactory quality.

(2A) For the purposes of this Act, goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any

description of the goods, the price (if relevant) and all the other relevant circumstances.

(2B) For the purposes of this Act, the quality of goods includes their state and condition and the following (among others) are in appropriate cases aspects of the quality of goods—

(a) fitness for all the purposes for which goods of the kind in question are commonly supplied, (b) appearance and finish, (c) freedom from minor defects, (d) safety, and (e) durability.

Applying this section a judge would thus consider whether a reasonable person would regard the goods as of satisfactory quality looking at the stated aspects in addition to all other relevant circumstances. Looking at fitness for purpose, the judge, will consider whether the goods are fit for the purpose the goods are commonly supplied so for example if you purchase a hairdryer and use it to dry your clothes, the judge is unlikely to conclude there has been a breach as the goods were not used for their common purpose. Conversely if you purchase a pair of shoes which fall apart after a few days wear, the seller cannot simply state they were fashion shoes and not intended for wearing full time.

In addition to the statutory guidance a court applies the acceptability and usability tests to help determine if the goods in question are of satisfactory quality.

The Acceptability Test – Applies to consumer transactions

The acceptability test looks at whether a reasonable purchaser would have accepted the goods at the same price had they known of the defect:

Shine v General Guarantee Corp  [1988] 1 All ER 911 (Case summary)

The Usability Test – Applies to business to business transactions

The usability test is less generous than the acceptability test. This test requires the court to consider if a reasonable purchaser could have used the goods for purposes for which the goods were commonly supplied:

Aswan Engineering v Lupdine [1987] 1 All ER 135 (Case summary)

S.14 (2C) provides certain limitations to the application of s.14(2) as follows:

(2C) The term implied by subsection (2) above does not extend to any matter making the quality of goods unsatisfactory—

(a) which is specifically drawn to the buyer's attention before the contract is made:

Bartlett v Sidney Marcus ltd [1965] 1 WLR 1013 (Case summary)

(b) where the buyer examines the goods before the contract is made, which that examination ought to reveal, or

(c) in the case of a contract for sale by sample, which would have been apparent on a reasonable examination of the sample.

S14 is a condition in a consumer sale and an innominate term in a non-consumer sale

4. S.15 Sale by Sample

S.15 applies to all sales by sample irrespective of whether it is a private sale, consumer sale or business to business sale.

S.15 (2) provides that in a contract for sale by sample there is an implied term-

(a) that the bulk will correspond with the sample in quality;

(b) that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.

Note that s.15 only relates to quality and not to other matters such as colour. S.15 is a condition in a consumer sale and an innominate term in non- consumer sales.

Additional remedies for consumer sales

Consumers are afforded additional remedies under part 5A SGA 1979 where the goods

do not conform to the contract of sale at the time of delivery or for up to 6 months after delivery.

S.61 Sale of Goods Act states that the meaning of consumer for the purposes of part 5A is taken from the definition given in s.12(1) UCTA. Thus a person deals as a consumer if they do not make the contract in the course of a business where the other person does. A Business can also be treated as a consumer if it is purchasing goods which are ordinarily supplied for private use or consumption.

1. S.48B (1) Repair or replacement

S.48B provides that the buyer can require the seller to repair or replace the goods at the seller's expense. The seller is required to do so within a reasonable time. If the buyer makes this request they lose the right to reject the goods unless the seller does not comply within a reasonable time. The seller need not repair or replace the goods where this would be impossible or disproportionate to do so.

2. S48C(1) Reduction of price

The seller may be required to reduce the purchase price under s.48 C (1) where the seller has not complied with a request from the buyer to repair or replace because it would be disproportionate to do so. This is a secondary remedy and can not be requested without the buyer first making a request for repair or replacement which has not been fulfilled.

3. S. 48C (2) Rescission of the contract

This is another secondary remedy available only where a request for repair or replace has not been complied with. Rescission is putting the parties back in their pre –contractual position ie the buyer gives back the goods and the seller gives back the

purchase price. However, the seller can deduct from the purchase price any value for the use the buyer may have had of the goods.

Supply of Goods and Services Act 1982

Where goods are supplied in addition to services, eg the installing of a new boiler, or the fitting of new engine parts in a car, the goods are covered by the Supply of Goods and Services Act 1982) (SGSA) rather than theSale of goods Act. The SGSA is divided into two parts Part 1 covers the supply of goods and part 2 covers the supply of services. Part 1 covers contracts which transfer property in goods and hire contracts. Part 1B provides additional remedies for consumers.

Part 1 Supply of goods

S.1 Defines contracts which transfer property in goods and excludes the following type of contracts:(a) contracts for the Sale of goods: (Covered by Sale of Goods Act)(b) contracts for hire purchase;(c) contracts involving trading stamps(d) contracts made by deed where there is no consideration(e) a contract intended to operate by way of mortgage, pledge or charge

Sections 2-5 replicate the provisions in the Sale of Goods Act sections 12-15in relation to title, description, satisfactory quality and sample.

S. 5A provides that in non-consumer sales the terms implied by sections 2-5 are innominate terms

S. 6 defines a contract for the hire of goods and excludes contracts of hire purchase and contracts using trading stamps.

Sections 7-10 again replicate sections 12-15 of the Sale of Goods Act in relation to title description, satisfactory quality and sample.

Part 1B

Part 1b S.11 provides additional remedies for consumers which replicate those in s 48 of the Sale of Goods Act in relation to repair or replace, reduction in price and rescission.

Part 2 Supply of services

S.12 SGSA defines contracts for the supply of services. It excludes contracts of apprenticeships, but includes any agreement for the supply of services irrespective of whether goods are also supplied. There is no requirement for money consideration.

S. 13 SGSA implies a term where the supplier acts in the course of a business, that the services will be carried out with reasonable care and skill.

s.14 SGSA implies a term where the service is carried out in the course of a business and no time is specified, that the service will be carried out within a reasonable time. What is considered a reasonable time is a question of fact and will depend on the circumstances.

S.15 SGSA where a service is carried out and no price has been agreed there is an implied term that a reasonable charge is payable. This is not limited to services supplied in the course of a business. What is a reasonable charge is a question of fact to be determined in the circumstances.

Further reading:

Law Commission Consultation Paper 188 Consumer Remedies for Faulty Goods Nov 2008

Office of Fair Trading response to consultation, Consumer Remedies for Faulty Goods, February 2009

Sale of Goods Act 1979 Supply of Goods and Services Act 1982 .

TAKE NOTEThe Sale of Goods Act has been replaced by the Consumer Rights Act. This came

into force on 1 October 2015.

The Consumer Rights Act has made some changes to your rights to return faulty

goods and get a refund, replacement or repair.

In addition, the Consumer Rights Act now gives you completely new rights when

you buy digital content.

Under the Sale of Goods Act 1979 there are a strict set of rules that retailers and sellers must abide by. When you buy goods it means you've entered into a contract with the seller of these goods. 

The Sale of Goods Act

Under the Sale of Goods Act 1979 goods must be as described, of satisfactory

quality and fit for purpose.

Fit for purpose means both their everyday purpose, and also any specific purpose that

you agreed with the seller (for example, if you specifically asked for a printer that would

be compatible with your computer)

Goods sold must also match any sample you were shown in-store, or any description in

a brochure.

If you have bought a faulty product, our guide shows you what you should do. 

SUMMARYAll goods must be:

as described of satisfactory quality and fit for purpose

If they're not, the retailer is in breach of contract and you have a claim under the Sale of Goods Act

Who is responsible

If your goods fail to meet any of the above criteria then you could have a claim under

the Sale of Goods Act.  

If you want to make a claim under the Sale of Goods Act you have several possible ways

of resolving your issue, depending on the circumstances and on what you want done.

Your rights are against the retailer – the company that sold you the product – not the

manufacturer, and so you must make any claim against the retailer.

However, the Sale of Goods Act doesn’t apply to goods you've bought on hire purchase

(HP).

Instead the Supply of Goods Implied Terms Act 1973 applies, which makes the HP

company responsible for the quality of the goods supplied and gives you slightly

different rights.

TOP TIPTo get a refund on a faulty item, you need to reject it and return it within a reasonable time after purchase - usually three to four weeks.

Returning faulty goods

If you buy a product that turns out to be faulty, you can choose to reject it which means

you can give it back and get a refund.

But, the law only gives you a reasonable time to do this – what's reasonable depends on

the product and how obvious the fault is.

However, even with major purchases or complex items, it’s safest to work on the basis

you usually have no more than three to four weeks from when you receive it to reject it.

Faulty goods replaced or repaired

You have the right to get faulty goods replaced or repaired if it's too late to reject them.

You can ask the retailer to do either, but they can normally choose to do whatever

would be cheapest.

Under the Sale of Goods Act, the retailer must either repair or replace faulty goods

'within a reasonable time but without causing significant inconvenience'.

If the seller doesn't do this, you're entitled to claim either:

• a reduction on the purchase price, or

• your money back, minus an amount for the usage you've had of the goods (called

recision)

If the retailer refuses to repair the goods, and they won't replace them either, you may

have the right to arrange for someone else to repair your item, and then claim

compensation from the retailer for the cost of doing this.

You have six years to take a claim to court for faulty goods in England, Wales and

Northern Ireland; in Scotland you have five years.

Proving your claim for faulty goods

If your claim under the Sale of Goods Act ends up in court, you may have to prove that

the fault was present when you bought the item and not, for example, something which

was the result of normal wear and tear.

If your claim is about a problem that arises within six months of buying the product, it's

up to the retailer to prove that the goods were of satisfactory quality, fit for purpose, or

as described when it sold them.

For example, by showing that the problem was caused by an external factor such as

accidental damage.

To get a faulty good repaired or replaced, follow our step-by-step guide. 

NEED HELP RESOLVING YOUR ISSUE?Which? legal experts can provide you with clear advice tailored to your issue. We're not on the clock, so for just £29.99 you can talk as long as you want, and call us whenever you need.To join, call us on  01992 822 829Learn more about how we can help.

Expert's reports

Beyond six months, it's up to you to prove that the problem was there when you

received the goods even if it has taken until now to come to light.

So, you may need to prove that the fault was not down to ordinary wear and tear or

damage you caused, and that the product (or a component) should have lasted longer

than it did.

To do this you may need an expert's report, for example, from an engineer or a

mechanic.

Always try to keep the cost of any report proportionate to the value of the claim and, if

you can, try to agree on an expert you and the seller both agree has the necessary

expertise.

ACTIONWhat to do if your car warranty company won’t pay for repairs

Step by step guidance on what to do if your car warranty company won’t pay for repairs.

1  Check the terms and conditions 

Check the terms of your warranty carefully so you know exactly who is providing the

cover. You also need to be aware of any exclusions in the warranty.

2  Contact the warranty provider 

Contact the warranty provider and quote the section of the policy document that makes

it clear that the remedial work you need doing is covered.

If the warranty provider refuses to arrange, or pay for the repairs, ask it to set out in

writing exactly why it considers that it is not responsible.

3  Don't be fobbed off

If the warranty provider doesn’t give a good reason for refusing the claim or doesn’t

respond to you at all, get quotes for carrying out the work.

Send these to the warranty provider explaining that if it continues to refuse to carry out

the work, you'll claim the cost back from them of having the work carried out. 

4  Taking your complaint further 

If the warranty provider is the dealer that sold you the car, you may need to take it to

court. Check first though whether the dealer is a member of any trade association. 

If so also check whether that association offers any sort of alternative dispute resolution

process. If it doesn’t then you could consider taking court action. 

Court action should always be a last resort and you should make sure that you have

taken all steps to resolve the dispute. 

In England and Wales there's a Practice Direction on Pre Action Conduct which helps

you with this process by setting out the steps you should take.

If the warranty is underwritten by an insurance company, you could refer the dispute to

the Financial Ombudsman Service. 

You'll need to have exhausted the warranty provider’s internal complaints procedure

first, or be able to show that more than eight weeks have passed since you referred

your complaint to the insurance company and that the matter remains unresolved.

ACTIONLetter to warranty provider who is refusing to pay for repairs

Use this letter template to demand that a warranty provider who is refusing to pay for repairs covered by the warranty takes action, including car warranties.

[Your address]

[Warranty provider address]

Dear

[Reference: warranty number]

I write further to my telephone call on [dd/mm/yy]

On [dd/mm/yy] my item developed the following issue: [details of the problem

experienced]

I contacted you and asked you to make arrangements for the item to be repaired

however you have refused on the basis that [set out the reasons the warranty

provider has given].

The warranty is a contract between me and [name of Warranty Provider]. 

Although [specify the issue] is covered by the warranty, you have failed to agree to

the repairs being carried out and are therefore in breach of contract. 

[Set out why you do not accept any reasons the warranty provider may have

given for refusing to carry out the repair]

I would make one final request for you to carry out the repairs in accordance with our

contract. 

If however, you are not prepared to do this, I will have no choice but to instruct a third

party quote for carrying out the work. 

I will then forward you a copy of the quote and seek reimbursement from you in full for

the cost of repairs along with any other associated losses I incur, if you continue to

refuse to carry out the work.

I look forward to hearing from you in [give a reasonable timeframe depending on

the urgency of the repair]  

Yours sincerely

The Consumer Rights Act came into force from 01 October 2015 and all purchases from this date onwards will be governed by this legislation.

The Consumer Rights Act 2015 is the biggest shake up in consumer rights law in a

generation and seeks to simplify, strengthen and modernise UK consumer law.

The act replaces three big pieces of consumer legislation - the Sale of Goods Act, Unfair

Terms in Consumer Contracts Regulations and the Supply of Goods and Services Act.

The Consumer Rights Act introduces:

30 days to get a refund  For the first time a specific timeframe has been created in

which you can reject a faulty item and get a full refund - now 30 days

A 'tiered' remedy system  In place for faulty goods, digital content and services,

this means your rights to a refund are now more clearly set out. Whether you're

entitled to a refund depends on how long you've owned the product.

Failed repairs  After one failed attempt by the retailer to repair or replace a faulty

item, you're entitled to ask for a refund or price reduction. 

A second repair or replacement  If you don't want a refund or price reduction, you

have the right to request another repair or replacement at no cost to you.

Deductions from refunds No deduction can be made from a refund in the first six

months after purchase. The only exception to this is motor vehicles, where a

reasonable reduction may be made for the use you’ve had of the vehicle.

Digital content rights  This new law gives consumers rights in relation to online

digital content that is paid for, digital content supplied free with other paid for items

and digital content supplied on a physical medium, such as a DVD.

Unfair terms in consumer contracts  It will now be easier for consumers to

challenge hidden fees and charges.  Now the key terms of a contract, including price,

may be assessed for fairness unless they’re both prominent and transparent.  

Pre-contract information The Consumer Rights Act states that if a retailer provides

pre-contract information in relation to a service and the consumer takes this

information into account, the service must comply with that information.

Product quality

As with the Sale of Goods Act, under the Consumer Rights Act all products must be of

satisfactory quality, fit for purpose and as described. 

The rules also include digital content in this definition. So all products - whether physical

or digital - must meet the following standards: 

Satisfactory quality  Goods shouldn't be faulty or damaged when you receive them.

You should ask what a reasonable person would consider satisfactory for the goods in

question? For example, bargain bucket products won’t be held to as high standards as

luxury  goods.

Fit for purpose  The goods should be fit for the purpose they are supplied for, as

well as any specific purpose you made known to the retailer before you agreed to buy

the goods.

As described  The goods supplied must match any description given to you at the

time of purchase.

Who should you claim against? 

If what you’ve bought doesn’t satisfy any of the three criteria outlined above, you have

a claim under the Consumer Rights Act.

If you've bought a faulty product, you can read our guide which shows you what you

should do and how to make a claim.

If you want to make a claim under the Consumer Rights Act, you have several possible

ways of resolving your issue, depending on the circumstances and on what you want to

have done to remedy the situation.

Your rights under the Consumer Rights Act are against the retailer – the company that

sold you the product – not the manufacturer, and so you must take any claim to the

retailer. 

What you can claim depends on how much time has passed since you made the

purchase. Read on to find out what your rights are in the first 30 days after purchase

and beyond. 

30-day right to reject

Under the Consumer Rights Act you have a legal to reject goods that are unsatisfactory

quality, unfit for purpose or not as described and get a full refund - as long as you do

this quickly. 

This right is limited to 30 days from the date you buy your product. After 30 days you

will not be legally entitled to a full refund if your item develops a fault. 

This right to a refund doesn't apply to purely digital products though - such as music,

games or apps that you buy as downloads. 

You can however ask for a digital product to be repaired or replaced if it develops a

fault. 

PERISHABLE GOODS

The 30 days is shorter for perishable goods where the period will be determined

by how long it is reasonable to have expected the goods to last. For example,

milk would be expected to last until its use-by date as long as it’s stored

correctly. 

Repair or replace

If you are outside the 30-day right to reject, you  have to give the retailer one

opportunity to repair or replace any goods or digital content which are of unsatisfactory

quality, unfit for purpose or not as described. 

You can choose whether you want the goods to be repaired or replaced. 

But the retailer can refuse if they can show that your choice is disproportionately

expensive compared to the alternative.

If the attempt at a repair or replacement is unsuccessful, you can then claim a refund or

a price reduction if you wish to keep the product.

You're entitled to a full or partial refund instead of a repair or replacement if any of the

following are true:

the cost of the repair or replacement is disproportionate to the value of the goods or

digital content

a repair or replacement is impossible

a repair or replacement would be significantly inconvenient

the repair would take unreasonably long

the repair has been unsuccessful.

If a repair or replacement is not possible, or the attempt at repair fails, or the first

replacement also turns out to be defective, you have a further right to reject the goods

for a full or partial refund.

If you don't want a refund and still want your product repaired or replaced, you have the

right to request the retailer makes further attempts at a repair or replacement.

Use our step-by-step guide if you want to ask a retailer to repair or replace something

you've bought that subsequently develops a fault. 

From 30 days to six months

If you discover the fault within the first six months from delivery, it is presumed to have

been there from the time of delivery - unless the retailer can prove otherwise.

During this time it's up to retailer to prove that the fault wasn't there at the time of

delivery - it's not up to you to prove that it was. 

If an attempt at repair or replacement has failed, you have the right to reject the goods

for a full refund or price reduction - if you wish to keep the product.

No deduction can be made from a refund in the first six months following an

unsuccessful attempt at repair or replacement.

The only exception to this rule is motor vehicles where a reasonable reduction may be

made for the use you've already had of the vehicle.

If you'd prefer to keep the goods in question you can request an appropriate price

reduction.

Six months or more

After the first six months the burden is on you to prove that the product was faulty at

the time of delivery. 

In practice, this may require some form of expert report, opinion or evidence of similar

problems across the product range.  

You have six years to take a claim to the small claims court for faulty goods in England,

Wales and Northern Ireland and five years in Scotland. 

This doesn't mean that a product has to last six years - just that you have this length of

time in which to make a claim if a retailer refuses to repair or replace a faulty product. 

GOODS THAT HAVE A DIGITAL ELEMENTFor goods that have a digital element, such as a smart TV or digital content

supplied in a physical form, you do have a 30-day right to reject it and get a

refund.

This right applies if any part of the product, including the digital element - for

example, the software on your smart TV - doesn't work properly or develops a

fault. 

Digital content

The Consumer Rights Act defines digital content as ‘data which are produced and

supplied in digital form.’

Just like goods, digital content must be:

of satisfactory quality

fit for a particular purpose

as described by the seller.

If digital content does not conform to these criteria, you have the right to a repair or

replacement of the digital content you've purchased. 

But if that repair or replacement doesn’t fix the situation, you can ask for a price

reduction which can be up to 100% of the cost of the digital content.

The retailer will have to compensate you if any device or other digital content you own

is damaged as a result of the digital content you've downloaded.

This applies where that damage would not have occurred had ‘reasonable care and skill’

been exercised in the provision of the digital content - even if that content was provided

free of charge.

DIGITAL CONTENT COVERED Any digital content for which you have paid for - whether that’s with money, a gift card or credits. Any free digital content supplied with goods, services of other digital content for which you pay a price.

For example, a digital programme you need to download in order to watch a paid-for online streaming service.

Any free digital content not usually available for free unless you pay a price for it or the goods, services or digital content it’s supplied with. For example, a smart TV or any other product with digital content pre-installed.

Delivery rights

The retailer is responsible for goods until they are in your physical possession or in the

possession of someone appointed by you to accept them. 

This means that retailers are liable for the service provided by the couriers they employ

- the delivery firm is not liable. 

The retailer is responsible for the goods until they are delivered to you and in your

possession.

Late deliveries 

There is a default delivery period of 30 days during which the retailer needs to deliver

unless a longer period has been agreed. 

If the retailer fails to deliver within the 30 days or on the date that has been agreed, you

can do the following:

If your delivery is later than agreed and it was essential that it was delivered on time,

then you have the right to terminate the purchase and get a full refund. 

If the delivery isn’t time essential but another reasonable delivery time can’t be

agreed, you’re also within your right to cancel the order for a full refund. 

Supply of a service

The term 'service' covers a wide variety of services including large and small-scale work

you might have carried out in your home.

From a small repair job on a vehicle with no written details or the installation of solar

panels to a new kitchen or major building work, all these require you to enter into a

contract.

Services can be provided alone or they may be provided with goods, for example, the

fitting of a new kitchen. 

WHAT IS A SERVICE?Examples of services provided without goods include:

dry cleaning entertainment work done by professionals, such as solicitors, estate agents and accountants building work or home improvements.

Examples of services provided with goods include: repairs to goods where parts are replaced eg car repairs fitted kitchens or bathrooms home improvements involving building and decorating work double glazing

In all of the above examples, the service contract is governed by the Consumer Rights

Act which means you can use this as protection should anything go wrong.

The rules mean that all contracts for services must do the following: 

The trader must perform the service with reasonable care and skill.

Information which is said or written is binding where the consumer relies on it.

Where the price is not agreed beforehand, the service must be provided for a

reasonable price.

The service must be carried out in a reasonable time.

If the service you’re provided doesn’t satisfy these criteria, you’re entitled to the

following remedies under the Consumer Rights Act:

The trader should either redo the element of the service which is inadequate or

perform the whole service again at no extra cost to you, within a reasonable time and

without causing you significant inconvenience.

Or, in circumstances where the repeat performance is impossible or can’t be done

within a reasonable time or without causing significant inconvenience, you can claim

a price reduction. Depending on how severe the failings are this could be up to 100%

of the cost.

Unfair contract terms

Your rights under the Consumer Rights Act make it easier to challenge hidden fees and

charges.

Now the key terms of a contract, including price, may be assessed for fairness unless

they are both prominent and transparent.  

This is an improvement for consumers because previously such terms were exempt

from a fairness test if they were written in plain language.  

Terms may be deemed unfair if:

they are contrary to the requirements of good faith - meaning they must be designed,

negotiated and entered into with the consumer in a fair and open way

they cause a significant imbalance between the rights of the retailer and consumer to

the detriment of the consumer.

You can use our guide to challenge unfair terms in contracts.

UNFAIR TERMSSome examples of terms that may be unfair under the Consumer Rights Act include:

fees and charges hidden in the small print something that limits your legal rights disproportionate default charges excessive early termination charges

If you think a contract term is unfair, you should complain to the trader.

If the trader doesn't agree, we recommend you seek legal advice before breaking the

terms of the contract.

As a last resort you could take the trader to court and the court will decide whether a

term is unfair. 

If the court decides that a term is unfair you may be able to ignore the term or even

cancel your contract without having to pay a cancellation fee.

ACTIONHow to reject a faulty product and get your money back

If you want to reject a faulty product and get your money back, follow our step-by-step guide. 

1  Stop using the product

As soon as you realise there's a problem with your product, stop using it. 

If you have to make a legal claim, it may damage your case if you continue to use it

after you know there's a problem.

2  Contact the retailer

Contact the retailer you bought it from and tell it about the problem. Tell them that you

want to 'reject' the item and get your money back. 

Under the Consumer Rights Act you only have 30 days to reject something. But a

reputable retailer may give you a refund as a goodwill gesture.

If you are outside the 30-day right to reject, you  have to give the retailer one

opportunity to repair or replace any goods or digital content which are of unsatisfactory

quality, unfit for purpose or not as described.

If the attempt at repair or replacement has failed, you have the right to reject the goods

for a full refund or price reduction - if you wish to keep the product.

And no deduction can be made from a refund in the first six months following an

unsuccessful attempt at repair or replacement.

TOP TIPS Stop using the product immediately Inform the retailer that you want to reject the item Cite your rights under the Consumer Rights Act

3  Use your guarantee

If the product is within its guarantee period, check to see if the guarantee offers a

refund in the circumstances you are in. 

If it doesn't, you could still contact the manufacturer explaining the problem and asking

if it will give you a refund.

4  Don't be fobbed off

If the retailer or the manufacturer will not help and you believe you are within the

reasonable time for rejecting the item, write to the retailer (not the manufacturer)

formally rejecting the product under the Consumer Rights Act.

If you think you are beyond the limit for rejecting the product, you should ask for a free

repair or replacement.

5  Did you pay by credit card? 

If you get no response from the retailer or if it has gone bust and you paid for an item

costing over £100 with a credit card, you can take your claim to the card company

under Section 75 of the Consumer Credit Act.

You have the same rights from your finance provider as you have against the retailer.

6  Chargeback

Chargeback is not enshrined in law but is part of Scheme Rules, which participating

banks subscribe to. 

It applies if you paid by debit card or on a credit card for an item costing less than £100.

You can ask your card provider to try and claw back the money you paid or part of it,

although exact rules may vary between Visa, Maestro and American Express.

7  Go to the ombudsman

The Consumer Ombudsman deals with all consumer complaints in sectors not already

covered by an ombudsman scheme, with a focus on home maintenance, improvements

or installation services, retail, second hand cars and car repairs as well as servicing.

You can escalate your complaint to the ombudsman providing you have given the

company a reasonable amount of time - usually up to eight weeks - to resolve your

problem.

If the company is willing to work with the ombudsman to resolve your complaint. The

aim is to reach a resolution within 10 working days

If the company is unwilling to work with the ombudsman – or a resolution that both

parties are satisfied with cannot be reached – you will be advised by the Consumer

Ombudsman on what to do next.

If you want to escalate your complaint to the ombudsman, you can use our advice

on taking your complaint to an ombudsman.

Five facts you may not know about your consumer rights

Do you know your consumer rights? Staying savvy could help you save money, get a refund that's owed to you or get the compensation you're entitled to. So don't be left in the dark. Read our list of five unusual facts you may not know about your consumer rights.

1  Small claims court

You can claim up to £10,000 in the small claims court in England and Wales. Find

out how to use the small claims court. 

2  Delivery problems

If you didn't agree for your parcel to be left with a neighbour and they deny having it,

it's the retailer's responsibility to sort it out. 

Find out more about your delivery rights if your parcel is left with a neighbour. 

3  Scams

If you've been the victim of a phishing scam, usually the most you'll stand to lose is £50

as the bank has to refund the rest. 

Find out more about what you should do if you have given a fraudster your bank

details. 

4  Mobile phone bills

If you capped your mobile phone usage, and the bill was above this cap, you can refuse

to pay the extra. 

See how you can challenge an excessive mobile phone bill. 

5  Faulty goods

If your goods are faulty and you don't have the receipt, you have the same rights to a

repair, refund or replacement under the Consumer Rights Act. 

Read our guide on what to do if you have a faulty product. 

CHAPTER IPRELIMINARY1.Short title, extent and commencement,- (1)This Act may be called the 2** Sale of Goods Act, 1930.

3[(2) It extends to the whole of Pakistan.]

(3) It shall come into force into force on the first day of July, 1930

1. For Statement of Objects and Reasons and for Report of Special Committee. See

Gazette of India, 1929 Pt. V.p. 163: for Report of Select Committed, see ibid., 1930, Pt.

V. p.1. This Act has been applied to Phulera in the Excluded Area of Upper Tanawal to

the extent the Act is applicable in the N.-W.F.P. subject to certain modifications, and

also extended to the Excluded Area of Upper Tanawal (N.-W.F.P.) other than Phulera

with effect from such date and subject to such modifications as may be notified, see N.-

W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulations, 1950.

It has also been extended to the Leased Areas of Balochistan, see the Leased Areas of

Balochistan, see Gazette of India, 1937, Pt. I. p. 1499.

2. The word “Indian” omitted by the Federal Laws (Revision and Declaration) Act, 1951

(26 of 1951), S.3. and Second Schedule.

3. Subs. by the Central Laws (Statute Reforms) Ordinance, 1960 (21 of 1960). S.3. and

Second Schedule. (with effect from the 14th October, 1955), for subsection (2) which

was amended by the A.O., 1949 and Act 26 of 1951.

2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—(1) “buyer” means a person who buys or agrees to buy goods;

(2) “delivery” means voluntary transfer of possession from one person to another;

(3) goods are said to be in a “deliverable state” when they are in such state that the

buyer would under the contract be bound to take delivery of them;

(4) “document of title to goods” includes a bill of lading, dock- warrant, warehouse

keeper’s certificate, wharfingers’ certificate, railway receipt, warrant or order for the

delivery of goods and any other document used in ordinary course of business as proof

of the possession or control of goods, or authorising or purporting to authorise, either

by endorsement or by delivery, the possessor of the document to transfer or receive

goods thereby represented;

(5) “fault” means wrongful act or default;

(6) “future goods” means goods to be manufactured or produced or acquired by the

seller after the making of the contract of sale;

(7) “goods” means every kind of movable property other than actionable claims and

money; and includes 4[electricity, water, gas,] stock and shares, growing crops, grass,

and things attached to or forming part of the land which are agreed to be severed

before sale or under the contract of sale;

(8) a person is said to be “insolvent” who has ceased to pay his debts in the ordinary

course of business, or cannot pay his debts as they become due, whether he has

committed and act of insolvency or not;

(9) “mercantile agent” means a mercantile agent having in the customary course of

business as such agent authority either to sell goods, or to consign goods for the

purposes of sale, or to buy goods, or to raise money on the security of goods;

(10) “price” means the money consideration for a sale of goods;

(11) “property” means the general property in goods, and not merely a special

property;

(12) “quality of goods” includes their state or condition;

4. Ins. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S,2 with effect

from the 7th June, 1962)

(13) “Seller” means a person who sells or agrees to sell goods;

(14) “specific goods” means goods identified and agreed upon at the time a contract of

sale is made; and

(15) expressions used but not defined in this act and defined in the Contract Act, 1872

(IX of 1872), have the meanings assigned to them in that Act.

3. Application of provisions of Act of 1872. The unrepealed provisions of the Contract

Act, 1872 (IX of 1872), save in so far as they are inconsistent with the express

provisions of this Act, shall continue to apply to contracts for the sale of goods.

CHAPTER II FORMATION OF THE CONTRACT4. Sale and agreement to sell.—(1) A contract of sale of goods is a contract whereby

the seller transfers or agrees to transfer the property in goods to the buyer for a price.

There may be a contract of sale between one part-owner and another.

(2) A contract of sale may be absolute or conditional

(3) Where under a contract of sale the property in the goods is transferred from the

seller to the buyer, the contract is called a sale, but where the transfer of the property

in the goods is to take place at a future time or subject to some condition thereafter to

be fulfilled, the contract is called in agreement to sell.

(4) An agreement to sell becomes a sale when the time elapses or the conditions are

fulfilled subject to which the property in the goods is to be transferred.

Formalities of the Contract

5. Contract of sale how made.—(1) A contract of sale is made by an offer to buy or sell

goods for a price and the acceptance of such offer. The contract may provide for the

immediate delivery of the goods or immediate payment of the price or both, or for the

delivery or payment by instalments, or that the delivery or payment or both shall be

postponed.

(2) Subject to the provisions of any law for the time being in force a contract of sale

may be made in writing or by word of mouth, or partly in writing and party by word of

mouth or may be implied from the conduct of the parties.

Subject-matter of Contract6. Existing or future goods.—(1) The goods which form the subject of a contract of sale

may be either existing goods, owned or possessed by the seller, or future goods.

(2) There may be a contract for the sale of goods the acquisition of which by the seller

depends upon a contingency which may or may not happen.

(3) Where by a contract of sale the seller purports to effect a present sale of future

goods, the contract operates as an agreement to sell the goods.

7 Goods perishing before making of contract.—Where there is a contract for the sale of

specific goods, the contract is void if the goods without the knowledge of the seller

have, at the time when the contract was made, perished or become so damaged as no

longer to answer to their description in the contract.

8. Goods perishing before sale but after agreement to sell.—Where there is an

agreement to sell specific goods, and subsequently the goods without any fault on the

part of the seller or buyer perish or become so damaged as no longer to answer to

their description in the agreement before the risk passes to the buyer, the agreement

is thereby avoided.

The Price

9. Ascertainment of price.—(1) The price in a contract of sale may be fixed by the

contract or may be left to be fixed in manner thereby agreed or may be determined by

the course of dealing between the parties.

(2) Where the price is not determined in accordance with the foregoing provisions, the

buyer shall pay the seller a reasonable price. What is a reasonable price is a question

of fact dependent on the circumstances of each particular case.

10. Agreement to sell at valuation.—(1) Where there is an agreement to sell goods on

the terms that the price is to be fixed by the valuation of a third party and such third

party cannot or does not make such valuation, the agreement is thereby avoided:

Provided that, if the goods or any part thereof have been delivered to and appropriated

by the buyer, he shall pay a reasonable price thereof.

(2) Where such third party is prevented from making the valuation by the fault of the

seller or buyer, the party not in fault may maintain a suit for damages against the party

in fault.

Conditions and Warranties11. Stipulation as to time.— Unless a different intention appears from the terms of the

contract, stipulations as to time of payment are not deemed to be of the essence of a

contract of sale. Whether any other stipulation as to time is of the essence of the

contract or not depends on the terms of the contract.

12. Condition and warranty.—(1) A stipulation in a contract of sale with reference to

goods which are the subject thereof may be a condition of a warranty.

(2) A condition is a stipulation essential to the main purpose of the contract, the breach

of which gives rise to a right to treat the contact as repudiated.

(3) A warranty is a stipulation collateral to the main purpose of the contract, the

breach of which gives rise to claim for damages but not to a right to reject the goods

and treat the contract as repudiated.

(4) Whether a stipulation in contract of sale is a condition or a warranty depends in

each cease on the construction of the contract. A stipulation may be a condition,

though called a warranty in the contract.

13. When condition to be treated as warranty,—(1) Where a contract of sale is subject

to any condition to be fulfilled by the seller, the buyer may waive the condition or elect

to treat the breach of the condition as a breach of warranty and not as a ground for

treating the contract as repudiated.

(2) Where a contract of sale is not severable and the buyer has accepted the goods are

part thereof 5*** the breach of any condition to be fulfilled by the seller can only be

treated as a breach of warranty and not as a ground for rejecting the goods and

treating the contract as repudiated, unless there is a term of the contract, express or

implied, to that effect.

(3) Nothing in this section shall affect the case of any condition or warranty fulfilment

of which is excused by law by reason of impossibility or otherwise.

14. Implied undertaking, as to title, etc.— In a contract of sale, unless the

circumstances of the contract are such as to show a different intention there is—

(a) an implied condition on the part of the seller that, in the case of sale, he has a right

to sell the goods and that, in the case of an agreement to sell, he will have a right to

sell the goods at the time when the property is to pass;

5. The words and comma “or where the contract is for specific goods the property in

which has passed to the buyer,” omitted by the Sale of Goods (Amendment) Ordinance,

1962 (47 of 1962), S.3 (with effect from the 7th June, 1962).

(b) an implied warranty that the buyer shall have and enjoy quiet possession of the

goods;

(c) an implied warranty that the goods shall be free from any charge or encumbrance

in favour of any third party not declared or known to the buyer before or at the time

when the contract is made.

15. Sale by description.—Where there is a contract for the sale of goods by description

there is an implied condition that the goods shall correspond with the description; and,

if the sale is by sample as well as by description, it is not sufficient that the bulk of the

goods corresponds with the sample if the goods do not also correspond with the

description.

16. Implied conditions as to quality or fitness.— Subject to the provisions of this Act

and of any other law for the time being in force, thee is no implied warranty or

condition as to the quality or fitness for any particular purpose of goods supplied under

a contract of sale, except as follows:-

(1) Where the buyer, expressly or by implication, makes known to the seller the

particular purpose for which the goods are required, so as to show that the buyer

relies on the seller’s skill or judgment, and the goods are of a description which it is in

the course of the seller’s business to supply (whether he is the manufacturer or

products or not), there is an implied condition that the goods shall be reasonably fit for

such purposes:

Provided that, in the case of a contract for the sale of a specified article under its

patent or other trade name, there is no implied condition as to its fitness for any

particular purpose

(2) Where goods are bought by description from a seller who deals in goods of that

description (whether he is the manufacturer or producer or not), there is an implied

condition that the goods shall be of merchantable quality:

Provided that, if the buyer has examined the goods, there shall be no implied condition

as regards defects which such examination ought to have revealed.

(3) An implied warranty or condition as to quality or fitness for a particular purpose

may be annexed by the usage of trade.

(4) An express warranty or condition does not negative a warranty or condition implied

by this Act unless inconsistent therewith.

[16-A. Seller to inform buyer to defect in goods sold. – Notwithstanding anything

contained in section 16, and save where the parties have entered into a agreement to

the contrary, the seller shall be under an obligation to inform the buyer of any defect

in the goods sold at the time of the contract, except in a case where the defect the

defect is obviously known to the buyer.]

17. Sale by sample.—(1) A contract of sale is a contract for sale by sample where there

is a term in the contract, express or implied, to that effect.

(2) In the case of a contract for sale by sample there is an implied condition—

(a) That the bulk shall correspond with the sample in quality;

(b) that the buyer shall have a reasonable opportunity of comparing the bulk with the

sample;

(c) that the goods shall be free from any defect, rendering them unmerchantable,

which would not be apparent on reasonable examination of the sample.

CHAPTER III EFFECTS OF THE CONTRACTTransfer of Property as between Seller and Buyer

18. Goods must be ascertained.—Where there is a contract for the sale of

unascertained goods, no property in the goods is transferred to the buyer unless and

until the goods are ascertained.

19. Property passes when intended to pass.—(1) Where there is a contract for the sale

of specific or ascertained goods the property in them is transferred to the buyer at

such time as the parties to the contract intend in to the transferred.

(2) For the purpose of ascertaining the intention of the parties regard shall be had to

the terms of the contract, the conduct of the parties and the circumstance of the case.

(3) Unless a different intention appears, the rules contained in section 20 to 24 are

rules for ascertaining the intention of the parties as to the time at which the property

in the goods is to pass to the buyer.

20. Specific goods in a deliverable state.— Where there is an unconditional contract for

the sale of specific goods in a deliverable state, the property in the goods passes to the

buyer when the contract is made, and it is immaterial whether the time of payment of

the price or the time of delivery of the goods, or both, is postponed.

6. S.16-A, inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.2 with effect

from 23-10-1994.

21. Specific goods to be put into a deliverable state.— Where there is a contract for the

sale of specific goods and the seller is bound to do something of the goods for the

purpose of putting them into a deliverable state, the property does not pass until such

thing is done and the buyer has notice thereof.

22. Specific goods in a deliverable state, when the seller has to do anything thereto in

order to ascertain price.—Where there is a contract for the sale of specific goods in a

deliverable state, but the seller is bound to weigh, measure, test or do some other act

or thing with reference to the goods for the purpose of ascertaining the price, the

property does not pass until such act or thing is done and the buyer has notice thereof.

23. Sale of unascertained goods and appropriation.—(1) Where there is a contract for

the sale of unascertained or future goods by description and goods of that description

and in a deliverable state are unconditionally appropriated to the contract, either by

the seller with the assent of the buyer or by the buyer with the assent of the seller, the

property in the goods thereupon passes to the buyer, Such assent may be express or

implied, and may be given either before or after the appropriation is made.

(2) Delivery to carrier.— Where, in pursuance of the contract, the seller delivers the

goods to the buyer or to a carrier to other bailee (whether named by the buyer or not)

for the purpose of transmission to the buyer, and does not reserve the right to

disposal, he is deemed to have unconditionally appropriated the goods to the contract.

24. Goods sent on approval or “on sale or return”.— When goods are delivered to the

buyer on approval or “on sale or return” of other similar terms, the property therein

passes to the buyer—

(a) when he signifies his approval or acceptance to the seller or does any other act

adopting the transaction;

(b) if he does not signify his approval or acceptance to the seller but retains the does

without giving of rejection, then, if a time has been fixed for the return of the goods, on

the expiration of such time, and, if no time has been fixed, on the expiration of a

reasonable time.

25. Reservation of right of disposal.— (1) Where there is a contract for the sale of

specific goods or where goods are subsequently appropriated to the contract, the seller

may, be the terms of the contract or appropriation, reserve the right of disposal of the

goods until certain conditions are fulfilled. In such case, notwithstanding the delivery

of the goods to a buyer, or to a carrier or other bailee for the purpose of transmission

to the buyer, the property in the goods does not pass to the buyer until the conditions

imposed by the seller are fulfilled.

7[(2) Where goods are shipped or are dispatched by railway and are by the bill of

lading or by railway receipt deliverable to the order of the seller or his agent the seller

is prima facie deemed to reserve the right of disposal].

(3) Where the seller of goods draws on the buyer for the price and transmits the bill of

exchange and 8[bill of landing or railway receipt] to the buyer together, to secure

acceptance or payment of the bill of exchange, the buyer is bound to return the 9[bill

of lading or railway receipt] if he does not honour the bill of exchange and if he

wrongfully retains the 10[bill of lading or railway receipt] the property in the goods

does not pass to him.

26. Risk prima facie passes with property.—Unless otherwise agreed, the goods remain

at the seller’s risk until the property therein is transferred to the buyer, but when the

property therein is transferred to the buyer, but when the property therein is

transferred to the buyer, the goods are at the buyer’s risk whether delivery has been

made or not:

Provided that, where delivery has been delayed through the fault of either buyer or

seller, the goods are at the risk of the party in fault as regards any loss which might

not have occurred but for such fault:

Provided also that nothing in this section shall affect the duties or liabilities of either

seller or buyer as a bailee of the goods of the other party.

Transfer of Title27. Sale by person not the owner.— Subject to the provisions of this Act and of any

other law for the time being in force, where goods are sole by a person who is not the

owner thereof and who does not sell them under the authority or with the consent of

the owner, the buyer acquires no better title to the goods than the seller had, unless

the owner of the goods is by his conduct precluded from denying the seller’s authority

to sell:

7. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with

effect from the 7th June 1962), for the original subsection (2).

8. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 with

effect from the 7th June, 1962), for “bill of lading”

9. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with

effect from the 7th June, 1962), for “bill of lading”.

10. Subs. by the Sale of Goods (Amendment) Ordinance, 1962 (47 of 1962), S.4 (with

effect from the 7th June, 1962), for “bill of lading”.

Provided that, where a mercantile agent is, with the consent of the owner, in

possession of the goods or of a document of title to the goods, any sale made by him,

when acting in the ordinary course of business of a mercantile agent, shall be as valid

as if he were expressly authorised by the owner of the goods to make the same;

provided that the buyer acts in goods faith and has not at the time of the contract of

sale notice that the seller has not authority to sell.

28. Sale by one of joint owners.— If one of several joint owners of goods has the sole

possession of the by permission of the co-owners, the property in the goods is

transferred to any person who buys them of such joint owner in good faith and has not

at the time of the contract of sale notice that the seller has not authority to sell.

29. Sale by person in possession under voidable contact.— When the seller of goods

has obtained possession thereof under a contract voidable under section 19 or section

19-A of the Contract Act, 1872, but the contract has not been rescinded at the time of

the sale, the

buyer acquires a goods title to the goods, provided he buys them in goods faith and

without notice of the seller’s defect of title.

30. Seller or buyer in possession after sale.—(1) Where a person, having sold goods,

continues or is in possession of the goods or of the documents of title to the goods, the

delivery or transfer by that person or by mercantile agent acting for him, of the goods

or documents of title under any sale, pledge or other disposition thereof to any person

receiving the same in good faith and without notice of the previous sale shall have the

same effect as if the person making the delivery or transfer were expressly authorised

by the owner of the goods to make the same.

(2) Where a person, having bought or agreed to buy goods, obtains, with the consent of

the seller, possession of the goods or the documents of title to the goods, the delivery

or transfer by that person or by a mercantile agent acting for him, of the goods or

documents of title under any sale, pledge or other disposition thereof to any person

receiving the same in good faith and without notice of any lien or other right of the

original seller in respect of the goods shall have effects as if such lien or right did not

exist.

CHAPTER IV PERFORMANCE OF THE CONTRACT31. Duties of seller and buyer. – It is duty of the seller to deliver the goods of the buyer

to accept and pay for them, in accordance with the terms of the contract of sale.

32. Payment and delivery are concurrent conditions. – Unless otherwise agreed,

delivery of the goods and payment of the price are concurrent conditions, that is to

say, the seller shall be ready and wiling to give possession of the goods to the buyer in

exchange for the price, and the buyer shall be ready and willing to pay the price in

exchange for possession of the goods.

33. Delivery. – Delivery of goods sold may be made by doing anything which the parties

agree shall be treated as delivery or which has the effect of putting the goods in the

possession of the buyer or of any person authorised to hold them on his behalf.

34. Effect of part delivery. – A delivery of party of goods, in progress of the delivery of

the whole, has the same effect, for the purpose of passing the property in such goods,

as a delivery of the whole; but a delivery of part of the goods, with an intention of

severing it from the whole, does not operate as a delivery of the remainder.

35. Buyer to apply for delivery – Apart from any express contract, the seller of goods is

not bound to deliver them until the buyer applies for delivery.

36. Rules as to delivery. (1) Whether it is for the buyer to take possession of the goods

or for the seller to send them to the buyer is a question depending in each case on the

contract, express or implied, between the parties. Apart from any such contract, goods

sold are to be delivered at the place at which they are at the time of the sale, and

goods agreed to be sold are to be delivered at the place at which they are at the time

of the agreement to sell, or if not them in existence, at the place at which they are

manufactured or produced.

(2) Where under the contract of sale the seller is bound to send the goods to the buyer,

but no time for sending them is fixed, the seller is bound to send them within a

reasonable time.

(3) Where the goods at the time of sale are in the possession of a third person, there is

no delivery by seller to buyer unless and until such third person acknowledges to the

buyer that he holds the goods on his behalf:

Provided that nothing in this section shall affect the operation of the issue or transfer

of any document of title to goods.

(4) Demand or tender of delivery may be treated as ineffectual unless made at a

reasonable hour. What is a reasonable hour is a question of fact.

(5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a

deliverable state shall be borne by the seller.

37. Delivery of wrong quantity. – (1) Where the seller delivers to the buyer a quantity

of goods less than he contracted to sell, the buyer may reject them, but if the buyer

accept the goods so delivered he shall pay for them at the contract rate.

(2) Where the seller delivers to the buyer a quantity of goods larger than he contracted

to sell, the buyer may accept the goods included in the contract and reject the rest, or

11[if the goods delivered are such that it is difficult or time consuming to separate the

quantity contracted for,] he may reject the whole. If the buyer accept the whole of the

goods so delivered, he shall pay for them at the contract rate.

(3) Where the seller delivers to the buyer the goods he contracted to sell mixed with

goods of a different description not included in the contract, the buyer may accept the

goods which are in accordance with the contract and reject the rest, or may reject the

whole.

(4) The provisions of this section are subject to any usage of trade, special agreement

or course of dealing between the parties.

38. Instalment delivers. – (1) Unless otherwise agreed, the buyer of goods is not bound

to accept delivery thereof by instalments.

(2) Where there is a contract for the sale of goods to be delivered by stated instalments

which are to be separately paid for and the seller makes no delivery or defective

delivery in respect of one or more instalments, or the buyer neglects or reduces to take

delivery of or pay for one or more instalments, it is a question in each case depending

on the terms of the contract and the circumstances of the case, whether the breach of

contract is a repudiation of the whole contract, or whether it is a severable breach

giving rise to a claim for compensation, but not to a right to treat the whole contract as

repudiated.

39. Delivery to carrier or wharfinger. – (1) Where, in pursuance of a contract of sale,

the seller is authorised or required to send the goods to the buyer, delivery of the

goods to a carrier, whether named by the buyer or not, for the purpose of transmission

to the buyer or delivery of the goods to a wharfinger for sale custody, is a prima facie

deemed to be delivery of the goods to the buyer.

(2) Unless otherwise authorised by the buyer, the seller shall make such contract with

the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to

the nature of the goods and the other circumstances of the case. If the seller omits so

to do and the goods are lost or damaged in course of transit or whilst in the custody of

the wharfinger, the buyer may decline to treat the delivery to the carrier or wharfinger

as a delivery to himself, or may hold the seller responsible in damages.

(3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route

involving sea transit, in circumstances in which it is usual to insure, the seller shall

such notice to the buyer as may enable him to insure them during their sea transit, and

if the seller fails so to do, the goods shall be deemed to be at his risk during such sea

transit.

11. Inserted by Sale of Goods (Amendment) Act (XVIII of 1994), S.3 w.e.f. 23-10-1994.

40. Risk where goods are delivered at distant place. – Where the seller of goods agrees

to deliver them at his own risk at a place other than where they, are when sold, the

buyer shall, nevertheless, unless otherwise agreed, take any risk of deterioration in the

goods necessarily incident to the course of transit.

41. Buyer’s right of examining the goods. – (1) Where goods are delivered to the buyer

which he has not previously examined, he is not deemed to have accepted them unless

and until he has had a reasonable opportunity of examining them for the purpose of

ascertaining whether they are conformity with the contract.

(2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he

is bound, on request, to afford the buyer a reasonable opportunity of examining the

goods for the purpose of ascertaining whether they are in conformity with the contract.

42. Acceptance. – The buyer is deemed to have accepted the goods when he intimates

to the seller, that he has accepted them, or when the goods have been delivered to him

and he does any act in relation to them which is inconsistent with the ownership of the

seller, or when, after the lapse of a reasonable time he retains the goods without

intimating to the seller that he has rejected them.

43. Buyer not bound to return rejected goods. – Unless otherwise agreed, where goods

are delivered to the buyer and he refuses to accept them, having the right so to do, he

is not bound to return them to the seller, but it is sufficient if he intimates to the seller

that he refuses to accept them.

44. Liability of buyer for neglecting or refusing delivery of goods. – When the seller is

ready and willing to deliver the goods and requests the buyer to take delivery, and the

buyer does not within a reasonable time after such request take delivery of the goods,

he is liable to the seller for any loss occasioned by his neglect or refusal to take

delivery, and also for a reasonable charge for the care and custody of the goods:

Provided that nothing in this section shall affect the rights of the seller where the

neglect or refusal of the buyer to take delivery amounts to a repudiation of the

contract.

CHAPTER V RIGHT OF UNPAID SELLER AGAINST THE GOODS45. “Unpaid seller” defined. – (1) The seller of goods is deemed to be an “unpaid seller”

within the meaning of this Act –

(a) when the whole of the price has not been paid or tendered;

(b) when a bill of exchange or other negotiable instrument has been received as

conditional payment, and the condition on which it was received has not been fulfilled

by reason of the dishonor of the instrument or otherwise.

(2) In this Chapter, the term “seller” includes any person who is in the position of a

seller, as, for instance, an agent of the seller to whom the bill of landing has been

endorsed, or a consignor or agent who has himself paid, or is directly responsible for,

the price.

46. Unpaid seller’s rights. – (1) Subject to the provisions of the Act and of any law for

the time being in force, notwithstanding that the property in the goods may have

passed to the buyer, the unpaid seller of goods, as such, has by implications of law –

(a) a lien on the goods for the price while he is in possession of them;

(b) in case of the insolvency of the buyer a right of stopping the goods in transit after

he has parted with the possession of them;

(c) a right of re-sale as limited by this Act.

(2) Where the property in goods has not passed to the buyer, the unpaid seller has, in

addition to his other remedies, a right of withholding delivery similar to and co-

extensive with his rights of lien and stoppage in transit where the property has passed

to the buyer.

Unpaid Seller’s Lien

47. Seller’s lien. – (1) Subject to the provisions of this Act, the unpaid seller of goods

who is in possession of them is entitled to retain possession of them until payment or

tender of the price in the following cases, namely: –

(a) where the goods have been sold without any stipulation as to credit;

(b) where the goods have been sold on credit, but the term of credit has expired;

(c) where the buyer becomes insolvent.

(2) The seller may exercise his right of lien notwithstanding that he is in possession of

the goods as agent or bailee for the buyer.

48. Part delivery. – Where an unpaid seller has made part delivery of the goods, he

may exercise his right of lien on the remainder, unless such part delivery has been

made under such circumstance as to show an agreement to waive the lien.

49. Termination of lien. – (1) The unpaid seller of goods loses his lien thereon –

(a) when he delivers the goods to a carrier or other bailee for the purpose of

transmission to the buyer without reserving the right of disposal of the goods;

(b) when the buyer or his agent lawfully obtains possession of the goods;

(c) by waiver thereof.

(2) The unpaid seller of goods, having a lien thereon, does not lose his lien by reason

only that he has obtained a decree for the price of the goods.

Stoppage in Transit

50. Right of stoppage in transit. – Subject to the provisions of this Act, when the buyer

of goods becomes insolvent, the unpaid seller who has parted with the possession of

the goods has the right of stopping them in transit, that is to say, he may resume

possession of the goods as long as they are in the course of transit, and may retain

them until the payment or tender of the price.

51. Duration of transit. – (1) Goods are deemed to be in course of transit from the time

when they are delivered to a carrier or other bailee for the purpose of transmission to

the buyer, until the buyer or his agent in that behalf takes delivery of them from such

carrier or other bailee.

(2) If the buyer or his agent in that behalf obtains delivery of the goods before their

arrival at the appointed destination, the transit is at an end.

(3) If, after the arrival of the goods at the appointed destination, the carrier or other

bailee acknowledges to the buyer or his agent that he holds the goods on his behalf

and continues in possession of them as bailee for the buyer or his agent, the transit is

at an end it is immaterial that a further destination for the goods may have been

indicated by the buyer.

(4) If the goods are rejected by the buyer and the carrier or other bailee continues in

possession of them, the transit is not deemed to be at an end, even if the seller has

refused to receive them back.

(5) When goods are delivered to a ship chartered by the buyer, it is a question

depending on the circumstances of the particular case, whether they are in the

possession of the master as a carrier or as agent of the buyer.

(6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the

buyer or his agent in that behalf, the transit is deemed to be at an end.

(7) Where part delivery of the goods has been made to the buyer or his agent in that

behalf, the remainder of the goods may be stopped in transit, unless such part delivery

has been given in such circumstances as to show an agreement to give up possession

of the whole of the goods.

52. How stoppage in transit is effected. – (1) The unpaid seller may exercise his right

of stoppage in transit either by taking actual possession of the goods, or by giving

notice of his claim to the carrier of other bailee in whose possession the goods are.

Such notice may be given either to the person in actual possession of the goods or to

his principal. In the later case the notice, to be effectual, shall be given at such time

and in such circumstances that the principal, by the exercise of reasonable diligence,

may communicate it to his servant or agent in time to prevent a delivery to the buyer

(2) When notice of stoppage in transit is given by the seller to the carrier or other

bailee in possession of the goods, he shall re-deliver the goods to or according to the

directions of the seller. The expenses of such re-delivery shall be borne by the seller.

Transfer by Buyer and Seller

53. Effect of sub-sale or pledge by buyer. – (1) Subject to the provisions of this Act, the

unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other

disposition of the goods which the buyer may have made, unless the seller has

assented thereto:

Provided that where a document of title to goods has been issued or lawfully

transferred to any person as buyer or owner of the goods, and that person transfers

the documents to a person who takes the documents in good faith and for

consideration, then, if such last mentioned transfer was by way of sale, the unpaid

seller’s right of lien or stoppage in transit is defeated, and if such last mentioned

transfer was by way of pledge or other disposition for value, the unpaid seller’s right of

lien or stoppage in transit can only be exercised subject to the rights of the transferee.

(2) Where the transfer is by way of pledge, the unpaid seller may require the pledge to

have the amount secured by the pledge satisfied in the first instance, as far as possible,

out of any other goods or securities of the buyer in the hands of the pledgee and

available against the buyer.

54. Sale not generally rescinded by lien or stoppage in transit. – (1) Subject to the

provision of this section, a contract of sale is not rescinded by the mere exercise by an

unpaid seller of his right of lien or stoppage in transit.

(2) Where the goods are of a perishable nature, or where the unpaid seller who has

exercised his right of lien or stoppage in transit gives notice to the buyer of his

intention to re-sell, the unpaid seller may, if the buyer does not within a reasonable

time pay or tender the price, re-sell the goods within a reasonable time and recover

from the original buyer damages for any loss occasioned by his breach of contract, but

the buyer shall not be entitled to any profit which may occur on the re-sale. If such

notice is not given, the unpaid seller shall not be entitled to recover such damages and

the buyer shall be entitled to the profit, if any, on the re-sale.

(3) Where in unpaid seller who has exercised his right of lien or stoppage in transit re-

sells the goods, the buyer acquires a good title thereto as against the original buyer,

notwithstanding that no notice of the re-sale has been given to the original buyer.

(4) Where the seller expressly reserves a right of re-sale in case the buyer should make

default, and, on the buyer making default, re-sells the goods, the original contract of

sale is thereby rescinded, but without prejudice to any claim which the seller may have

for damages.

CHAPTER VI MISCELLANEOUS62. Exclusion of implied terms and conditions. – Where any right, duty or liability

would arise under a contract of sale by implication of law, it may be negatived or

varied by express agreement or by the course of dealing between the parties, or by

usage, if the usage is such as to bind both parties to the contract.

63. Reasonable time a question of fact. – Where in this Act any reference is made to a

reasonable time, the question what is a reasonable time is a question of fact.

64. Auction sale.— In the case of a sale by auction—

(1) where goods are put up for sale in lots, each lot is prima facie deemed to be the

subject of a separate contract of sale;

(2) the sale is complete when the auctioneer announces its completion by the fail of the

hammer or in other customary manner; and, until such announcement is made, any

bidder may retract his bid;

(3) a right to bid may be reserved expressly by or on behalf of the seller and, where

such right is expressly so reserved, but not otherwise, the seller or any one person on

his behalf may, subject to the provisions hereinafter contained, bid at the auction;

(4) where the sale is not notified to be subject to a right to bid on behalf of the seller, it

shall not be lawful for the seller to bid himself or to employ any parson to bid at such

sale, or for the auctioneer knowingly to take any bid from the seller or any such

person; and any sale contravening this rule may be treated as fraudulent by the buyer;

(5) the sale may be notified to be subject to a reserved or upset price;

(6) if the seller makes use of pretended bidding to raise the price, the sale is voidable

at the option of the buyer.

12[64-A. In contracts of sale amount of increased or decreased duty to be added or

deducted.—In the event of any duty of customs or excise 13[or tax] on any goods being

imposed, increased, decreased or remitted after the making of any contract for the

sale of such goods without stipulation 14[as to the payment of duty or tax where duty

or tax] was not chargeable at the time of the making of the contract, or for the sale of

such goods 15[duty paid or tax paid where duty or tax] was chargeable at that time,—

(a) if such imposition or increase so takes effect that 16[the duty or tax or increased

duty or tax] as the case may be, or any part thereof, is paid, the seller may add so

much to the contract price as will be equivalent to the amount paid 17[in respect of

such duty or tax or increase of duty or tax] and he shall be entitled to be paid and to

sue for and recover such addition, and

12. S.64-A ins. by the Indian Sale of Goods (Amendment) Act, 1940 (41 of 1940), S.2.

13. Ins. by the Sale of Goods (Amdt.) Act, 1956 (5 of 1956), S.2 (with effect from the

11th April, 1956).

14. Subs. ibid. (with effect from the 11th April, 1956) for “as to the payment of duty

where duty”.

15. Subs. by the Sale of Goods (Amendment) Act, 1956), S.2 (with effect from the 11th

April, 1956), for “duty paid where duty”.

16. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956) (with effect from the

11th April, 1956), for “the duty or increased duty”.

(b) if such decrease or remission so takes effect that the decreased duty 18[or tax] only

or no duty 19[or tax], as the case may be, is paid, the buyer may deduct so much from

the contract price as will be equivalent to the decrease of duty 20[or tax] or remitted

duty 21[or tax], and he shall not be liable to pay, or be sued for or in respect of, such

deduction.]

22[Explanation.—The word “tax” in this section means the tax payable under the Sales

Tax Act, 1951].

65. [Repeal].—Rep. by the Repealing Act, 1938 (I of 1938), S.2. and Schedule.

66. Savings.—(1) Nothing in this Act or in any repeal effected thereby shall affect or be

deemed to affect—

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred

before the commencement of this Act, or

(b) any legal proceedings or remedy in respect of any such right, title, interest,

obligation or liability, or

(c) anything done or suffered before the commencement of this Act, or

(d) any enactment relating to the sale of goods which is not expressly repealed by this

Act, or

(e) any rule of law not inconsistent with this Act.

(2) The rules of insolvency relating to contracts of sale do not apply to any transaction

in the form of a contract of sale which is intended to operate by way of mortgage,

pledge, charge or other security.

17. Subs. by the Sale of Goods (Amendment) Act, 1956 (5 of 1956), (with effect from

the 11th April, 1956), for “in respect of such duty or increase of duty”.

18. Ins. ibid. (with effect for the 11th April, 1956).

19. Ins. ibid. (with effect for the 11th April, 1956).

20. Ins. ibid. (with effect for the 11th April, 1956).

21. Ins. ibid. (with effect for the 11th April, 1956).

22. Explanation added ibid. (with effect from the 11th April, 1956).

entries relating to firms are to be made therein, and the mode in which such entries

are to be amended or notes made therein.

(d) regulating the procedure of the Registrar when disputes arise;

(e) regulating the filing of documents received by the Registrar;

(f)prescribing conditions for the inspection of original documents;

(g) regulating the grant of copies;

(h) regulating the elimination of registers and documents;

(i) providing for the maintenance and form of an index to the Register of Firms; and

(j) generally, to carry out the purposes of this Chapter.

(3) All rules made under this section shall be subject to the conditions of previous

publications:

19[Provided further that the fees payable for any service desired on the same day on

which an application for the same is made may be double the aforesaid maximum

fees.]

CHAPTER VII SUPPLEMENTAL67. Mode of giving public notice.— A public notice under this Act is given—

(a) where it relates to the retirement or expulsion of a partner from a registered firm,

or to the dissolution of a registered firm, or to the election to become or not to become

a partner in a registered firm by a person attaining majority who was admitted as a

minor to the benefits of partnership, by notice to the Registrar of Firms under section

63, and by publication in the 20[official Gazette] and in at least one vernacular

newspaper circulating in the district where the firm to which in relates has its place or

principal place of business, and

(b) in any other case, by publication in the 20[official Gazette] and in at least one

vernacular newspaper circulating in the district where the firm to which it relates has

its place or principal place of business.

68. [Repeals.] Rep. by the Repealing Act, 1938 (I of 1938), S.2 and Schedule.

19. Proviso added by Partnership (Amendment) Ordinance (XIX of 1981),

S.3 dated 18-5-1981

20. Substituted by A.O., 1937, for “local official Gazette”.

69. Savings. – Nothing in this Act or any repeal effected thereby shall affect or be

deemed to effect –

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred

before the commencement of this Act, or

(b) any legal proceeding or remedy in respect of any such right, title, interest,

obligation or liability, or anything done or suffered before the commencement of this

Act, or

(c) anything done or suffered before the commencement of this Act, or

(d) any enactment relating to partnership not expressly repealed by this Act, or

(e) any rule of insolvency relating to partnership, or

(f) any rule of law not inconsistent with this Act.

[SCHEDULE I] MAXIMUM FEES[See subsection (1) of section 71]

Document or act in respect of which the fee is payable

Maximum Fees

Rs.

Statement under section 58 50

Statement under section 60 20

Intimation under section 61 20

Intimation under section 62 20

Notice under section 63 20

Application under section 64 20

Inspection of the Register of Firms under subsection (1) of section 66

5

Inspection of documents relating to a firm under subsection (2) of section 66 or any other document in the custody of theRegistrar of Firms

5

Copies from the Register of FirmsRs. 2 for each 100

words or  part thereof.]

SCHEDULE II.— [ENACTMENTS REPEALED]. Rep. by the Repealing Act, 1938

(1 of 1938), section 2 and Schedule.A