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Contract and Commercial Law Act 2017

Sale of goods - Formation of contract - Conditions and warranties

135: Implied condition and warranties as to title and quiet possession

You could also call this:

“The law says sellers must own what they sell and you can use it without problems”

When you buy something, the law says there are some things you can expect from the seller. These are called ‘implied conditions and warranties’.

First, the seller must have the right to sell what they’re offering you. If they’re selling it right now, they must have the right to sell it now. If they’re promising to sell it to you later, they must have the right to sell it when that time comes.

Second, you should be able to use what you’ve bought without anyone else interfering. This is called ‘quiet possession’.

Third, what you’re buying shouldn’t have any hidden debts or claims on it from other people. If there are any, the seller must tell you about them before you buy.

These rules apply to all sales unless you and the seller agree to something different. It’s like a promise that comes with every purchase to protect you as the buyer.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844326.

Topics:
Money and consumer rights > Consumer protection Business > Fair trading
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"When you can't keep a promise for a good reason"

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"The seller must give you what they described when you buy something"

Part 3 Sale of goods
Formation of contract: Conditions and warranties

135Implied condition and warranties as to title and quiet possession

  1. In a contract of sale there is—

  2. an implied condition on the part of the seller that,—
    1. in the case of a sale, the seller has a right to sell the goods; and
      1. in the case of an agreement to sell, the seller will have a right to sell the goods at the time when the property is to pass:
      2. an implied warranty that the buyer will have and enjoy quiet possession of the goods:
        1. an implied warranty that the goods are free from any charge or encumbrance in favour of any third party that is not declared or known to the buyer before or at the time when the contract is made.

          1. The implied condition and warranties in subsection (1) apply unless the circumstances of the contract show a different intention.

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