Section 14

Section 14 of the Sale of Goods Act, 1930, provides that in a contract of sale, there is an implied undertaking by the seller that he has the right to sell the goods, and that the goods are free from any charge or encumbrance in favor of any third party. The section further provides that there is also an implied undertaking by the seller that the goods are of merchantable quality, and that they are fit for the purpose for which they are sold. The Supreme Court of India has held that the implied undertaking as to title is a fundamental term of the contract, and if the seller fails to fulfill this undertaking, the buyer is entitled to terminate the contract (Kumaraswami Sastri v. Krishnaswami Sastri, (1961) 2 SCR 645).