Under Section 17(2) of the Sale of Goods Act, 1930, which implied warranty applies in contracts for sale by sample? 

Section 17(2) provides: "In the case of a contract for sale by sample, there is an implied warranty that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on a reasonable examination of the sample." This provision protects buyers by guaranteeing that latent (hidden) defects not discernible through reasonable examination of the sample are the seller's responsibility. Critically, this is a warranty (not a condition), so breach entitles the buyer only to damages, not rejection. The provision distinguishes between patent defects (visible on examination) and latent defects (not visible despite reasonable inspection). For instance, if a cloth sample appears perfect but the bulk goods have internal weaving defects undetectable from the sample, the buyer can claim damages but must accept the goods.