Page:United States Statutes at Large Volume 50 Part 1.djvu/57

 32 Sale at a valuation. Where third person prevented from fixing price, etc . . Post, pp. 41, 44. Conditions and war- ranties. Effect of. Express warranty defined. Implied warranties of title. implied warranty in sale by description. Implied warranties of quality. 75TH CONGRESS, 1ST SESSION-CH. 43- MARC H 17, 1 937 SEC. 10. SALE AT A VALUATION.-(I) Where there is a contract to sell or a sale of goods at a price or on terms to be fixed by a third person, and such third person without fault of the seller or the buyer cann ot or does not fix t he price o r terms, t he contrac t or the sale is thereby avoided ; but if the goods or any part thereof have been delivered to and appropriated by the buyer he must pay a reasonable price the refor. ( 2) Wher e such third p erson i s preve nted f rom fix ing the price or terms b y fault of the selle r or the b uyer, the party not in fault may hav e such remedie s agai nst the party in faul t as ar e allow ed by parts IV and V of this Act. CONDITIONS AND WARRANTIES SEC. 11 . EFFECT OF CONDITIONS .-(1) Where the obligation of either party to a contract to sell or a sale is subject to any condition which is not performed, such party may refuse to proceed with the con- tract or sale or he may waive performance of the condition. If the other party has promised that the condition should happen or be perform ed, suc h first -menti oned pa rty may also t reat th e nonpe r- formance of the condition as a breach of warranty. (2) Where the property in the goods has not passed, the buyer m ay treat t he fulfill ment by the sell 1 of his obligations to furnish goods as described and as warranted expressly or by implication in the contract to sell as a condition of the obligation of the buyer to perform his promise to accept and pay for the goods. SEC. 12 . DEFINITION or EXPRESS WARRANTY .-Any affirmation of fact or any promise by the seller relating to the goods is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the goods, and if the buyer pur- chases the goods rel ying there on. No affirmati on of the value of t he goods, nor any statement purporting to be a statement of the seller's opinion on ly shall b e construe d as a war ranty. SEC. 13 . IMPLIED WARRANTIES OF TITLE.-In a contract to sell or a sale, unless a contrary intention appears, there is- (1) An implied warranty on the part of the seller that in case of a sale he has a right to sell the goods, and that in case of a contract to sell he will have a right to sell the goods at the time when the prop- ertistopass; (2) An implied warranty t hat the bu yer shall have and e njoy quiet p ossession of the goo ds as again st any law ful claims existing at the time of the sale ; (3) An implied warranty that the goods shall be free at the time of the sale from any charge, or encumbrance in favor of any third person, not declared or known to the buyer before or at the time when the contract or sale is made. (4) This section shall not, however, be held to render liable a sheriff, auctioneer, mortgagee, or other person professing to sell by virtue of authority in fact or law, goods in which a third person has a legal or equitable interest. SEC. 14. IMPLIED WARRANTY IN SALE BY DESCRIPTION .-Where there is a contract to sell or a sale of goods by description, there is an im- plied warranty that the goods shall correspond with the description and if the contract or sale be by sample, as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description. SEC. 15. IMPLIED WARRANTIES OF QUALITY.-Subject to the provi- sions of this act and of any statute in tha t behalf, there is no implied ' So in original.