Q: Elaborate section 15 and section 16 of sales of goods act, 1930 ?

Ans: 

As per Sec. 15 of The Sale of Goods Act', 1930, where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description.

Generally, when goods are sold, the buyer must exercise reasonable care and caution, regarding the defects, quantity, quality etc. If the defects are patent and are easy to discover, the seller cannot be held liable. However, if the defects are latent and not easy to discover, the seller is held liable. Sec. 16 of the Sale of Goods Act confirms this by providing exceptions to the rule:

Sec. 16 (2) states that the goods should be merchantable quality. Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), then there is an implied condition to "Y" that the goods shall be of merchantable quality.

In the problem given, Y has bought the harvest machine from X when the latter described it as new one and also assured him that the same is free from any defect.

The harvest machine sold by X was a very old one, having latent defects which were not perceivable and therefore Y bought the same, entirely relying upon the assurance given by X.

This is a case of breach of the implied condition that the goods sold shall be of merchantable quality and therefore Y is entitled to a legal remedy.

Y's suit to set aside the contract of sale merits success keeping in view the foregoing.