Legal Aspect of IT Business

Assessment - 1
Submitted By:
20030241065 Gazal Doshi

MBA ITBM 2020-22

Date of Submission: 16th January 2022
Submitted to: Mr. Sagar Bedre
Case Study Answers:

1. What are the legal remedies available to Mc Dowell and company Ltd in this case?

This case describes how McDowell purchased a Toyota Land Cruiser with the registration
number DLSCB-310 from Mr. Garg. Prior to collecting the sum of Rs 33,90,000, the car
was registered in the names of McDowell and the firm. Mr. Garg transferred the car
registration and received Rs.37,40,000/- in this transaction, which was governed by the
Sale of Goods Act of 1930. A condition suggested in section 14 of the Sales of Goods Act
1930 is that one should have clear title to sell roads and that there should be no
difficulties with the title of the goods.

Legal remedies which are available to Mc dwell and company ltd in this case are: -

Section14b -

A warranty of quiet possession is implied in a scale transaction, unless there is a contrary

purpose, that the buyer will have and enjoy possession of the goods. If the buyer is denied
the enjoyment of goods as a result of the seller's defective title to sell, he can sue the
seller for damages.

Section 14c -

Warranty of Encumbrance-Freedom from encumbrance-The buyer is entitled to a

warranty that the products are free of any charges or liabilities in the buyer's favour. If his
possession is split in any way as a result of the existence of any charge or impediment on
the goods in the name of a third party, he has the right to prosecute for breach of
warranty.

In our case police had arrived to take possession of the car breach of section 14(2) of
sales of goods act 1930. McDowell has a right to sue Mr. Garg and the money-back
including interest and expenses.

Under the sales of goods act, 1930 right against sellers for breach of contract are

A. Suit for price

B. Suit for damages

 C. Suit for breach of warranty

D. Suit for interest

E. Suit for specific performance

F. Repudiation of the contract before the due date.

This right alone McDowell and Company to invoke above points with section 14 breach
of contract and can win the case against Mr. Garg who in our case is the seller.

2. Is there breach of condition under Sale of Goods Act, 1930? What are the conditions and
warranties under Sale of Goods Act, 1930?
 Section 12(2) A mission constraint is a provision that is crucial to the contract's
primary goal.
 A warranty, according to Section 12(3), is a term additional to the contract's
significance and meaning

Condition is:-

A. Express condition: - say that something has to be there for the fulfilment of the
contract and shall be agreed and expressed condition by both parties. This is a condition
by the seller for the buyer.

B. Implied condition: - These are the conditions that are not specifically mentioned in the
contract but this exists

section 14 - condition as to title,

section 15 - sale by description

section 16 - condition of quality and fitness.

Sale by sample

Condition implied by custom

The condition has to be wholesome

Condition as to merchantability

Types of warranties

a. Express warranty: Both parties are involved in the contract, and both parties accept the
contract warranty.

B. Implied warranty: These warranties are not specified clearly in the contract, but they
are included in the sale contract.

Warranty-freedom of hindrance

Warranty-undistributed possession

Warranty-implied to disclose dangerous nature of goods sold.

Breach of warranty as to undistributed possession under section 14 conditions of title or

breach of warranty are warranties as to undistributed possession in our case. So, under the
Sale of Goods Act 1930, a breach of contract occurred in the above-mentioned point and
condition.