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Case of Partnership

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Submitted By tanmayjain
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1. Whether the defendants liable to pay the compensation for the breach of contract to the plaintiff firm?
Section 16 of the Sale of Goods Act, 1930 clearly stated:
Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale
In the case of Dharmpal & Co, Agra v. Firm Kila Gatla Ram Chandra Rao & Co , the court held that the buyer cannot repudiate the contract of sale on account of quality if it is not mentioned clearly as per the contract. Similarly, the court also held the same principle in the case of In re Firm Beharilal Baldeo Prasad .
In the present matter, the plaintiff firm has rejected the consignment of the defendant on the grounds of poor quality when the facts are silent regarding the quality of the goods as per the provisions of the agreement between both parties of supplying 76,000 neem soaps. The contract was limited to supply of the consignment within 90 days which the defendants have done. The term “expected consignment” is vague as it is silent on specific facts of the consignment like quality. The defendants have taken exceptional efforts to perform the contract within the stipulated time period as HHI was beset with labour dispute as well as failure of soap mixture machine Sigma. The refusal on the part of the plaintiff firm to extend the deadline of the contract forced the defendants to purchase 70,000 neem soaps from the neighbouring firm LLD and was unable to take due care in performing the contract. Since the defendants have duly performed the contract within the stipulated time period, the defendants cannot be held liable for the alleged breach of contract and the plaintiff firm is not entitled to the compensation according to the contract.

2. Whether the

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