'P' bought black yarn from 'D' and when delivered, found it damaged by the white ants. P rejected the yarn received by him, while D demands the payment, on the plea that P has been given an opportunity to examine the pro

According to Section 16(2) of the Sale of Goods Act, 1930, Goods must be of merchantable quality, if they are bought by description from dealer of goods of that description. Merchantable quality means that the goods must be such as would be acceptable to a reasonable person, having regard to prevailing conditions. They are not merchantable if they have defects which make them unfit for ordinary use, or are such that a reasonable person knowing of their condition would not buy them. But, if the buyer has examined the goods, there is no implied condition as regards defects which such examination ought to have revealed. If, however, examination by the buyer does not reveal the defect and he approves and accepts the goods, but when put to work, the goods are found to be defective, there is a breach of condition of merchantable quality. The buyer is given a right to examine the goods before accepting them. But a mere opportunity without an actual examination, however, cursory, would not suffice to deprive him of this right. In the given problem, 'P' bought black yarn from 'D' and, when delivered, found it damaged by the white ants. The condition of merchantability was broken. Hence, P can reject the yarn received.