Hong Kong Ordinances

SALE OF GOODS ORDINANCE - SECT 14

Implied undertaking as to title etc.

(1) In every contract of sale, other than one to which subsection

(2) applies, there is-

   (a)  an implied condition on the part of the seller that in the case of the
        sale, he has a right to sell the goods, and 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; and

   (b)  an implied warranty that the goods are free, and will remain free
        until the time when the property is to pass, from any charge or
        encumbrance not disclosed or known to the buyer before the contract is
        made and that the buyer will enjoy quiet possession of the goods
        except so far as it may be disturbed by the owner or other person
        entitled to the benefit of any charge or encumbrance so disclosed or
        known.

(2) In a contract of sale, in the case of which there appears from the
contract or is to be inferred from the circumstances of the contract an
intention that the seller should transfer only such title as he or a third
person may have, there is-

   (a)  an implied warranty that all charges or encumbrances known to the
        seller and not known to the buyer have been disclosed to the buyer
        before the contract is made; and

   (b)  an implied warranty that neither-

        (i)    the seller; nor

        (ii)   in a case where the parties to the contract intend that the
               seller should transfer only such title as a third person may
               have, that person; nor

        (iii)  anyone claiming through or under the seller or that third
               person otherwise than under a charge or encumbrance disclosed
               or known to the buyer before the contract is made, will disturb
               the buyer's quiet possession of the goods. (Replaced 58 of 1977
               s. 4) [cf. 1973 c. 13 s. 1 U.K.]