Hong Kong Ordinances

SALE OF GOODS ORDINANCE - SECT 16

Implied undertakings as to quality or fitness

(1) This section provides for the circumstances in which, and the extent to
which, there is any implied condition or warranty as to the quality or fitness
for any particular purpose of goods supplied under a contract of sale.
(Replaced 85 of 1994 s. 4)

(2) Where the seller sells goods in the course of a business, there is an
implied condition that the goods supplied under the contract are of
merchantable quality, except that there is no such condition-

   (a)  as regards defects specifically drawn to the buyer's attention before
        the contract is made; or

   (b)  if the buyer examines the goods before the contract is made, as
        regards defects which that examination ought to reveal; or (Amended 85
        of 1994 s. 4)

   (c)  if the contract is a contract for sale by sample, as regards defects
        which would have been apparent on a reasonable examination of the
        sample. (Added 85 of 1994 s. 4)

(3) Where the seller sells goods in the course of a business and the buyer,
expressly or by implication, makes known to the seller any particular purpose
for which the goods are being bought, there is an implied condition that the
goods supplied under the contract are reasonably fit for that purpose, whether
or not that is a purpose for which such goods are commonly supplied, except
where the circumstances show that the buyer does not rely, or that it is
unreasonable for him to rely, on the seller's skill or judgment.

(4) An implied condition or warranty as to quality or fitness for a particular
purpose may be annexed to a contract of sale by usage.

(5) Subsections (1), (2), (3) and (4) apply to a sale by a person who in the
course of a business is acting as agent for another as they apply to a sale by
a principal in the course of a business, except where that other is not
selling in the course of a business and either the buyer knows that fact or
reasonable steps are taken to bring it to the notice of the buyer before the
contract is made.

(6) In the application of subsection (3) to an agreement for the sale of goods
under which the purchase price or part of it is payable by instalments any
reference to the seller shall include a reference to the person by whom any
antecedent negotiations are conducted.

(7) In subsection (6) "antecedent negotiations" (事先商議) means any
negotiations or arrangements with the buyer whereby he was induced to make the
agreement or which otherwise promoted the transaction to which the agreement
relates.

(8) Except as provided by this section and section 17, and subject to the
provisions of any other enactment, there is no implied condition or warranty
as to the quality or fitness for any particular purpose of goods supplied
under a contract of sale. (Added 85 of 1994 s. 4) (Replaced 58 of 1977 s. 6)
[cf. 1973 c. 13 s. 3 U.K.]

"antecedent negotiations" (事先商議)