Sales of Goods

Section 16 (1) also state that goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or producer or not). Company Y made sure that Inner Mongolia Fuyuan Agriculture Products Limited Company is the producer and supplier of tomato paste. Therefore, company Y conducts research on the background Inner Mongolia Fuyuan Agriculture Products Limited Company. As a result, they discovered that that Inner Mongolia Fuyuan Agriculture Products Limited Company is the third company in China, that produces tomato paste and it belongs to Fuyuan Group.
Furthermore, section 16 (2) tells us *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. In the case of company Y they were pretty sure that tomato paste which they purchase worth the price. Thus, they have checked the sample and it has met their requirement. They were confident that the quality of the tomato paste will be good because it is a big producer and they should value its reputation and quality of its products. The section16 (2) also state that there is an implied condition that the goods shall be of merchantable quality. According to company Y the tomato paste supplied at first by Inner Mongolia Fuyuan Agriculture Products Limited Company was in an excellent quality and similar to the sample shown but the spoilage was discovered in the second batch of goods (tomato paste).
An implied warranty or condition as to quality or fitness
for a particular purpose may be annex by the usage of
trade: