Which statement correctly reflects the implied condition

Solution

Section 14(a) provides: "In a contract of sale, the seller shall be deemed to have made, on behalf of himself, an implied undertaking that in the case of a sale, he has a right to sell the goods, and that 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." This condition distinguishes between existing sales (where title must vest at the time of contract) and future sales (where title must vest when property is to pass). Breach of this condition entitles the buyer to reject goods and claim refund. Critically, this condition concerns the right to sell, not mere possession; the seller need not be the absolute owner but must have legal authority to transfer property.