Microbeads AG v Vinhurst Road Markings Ltd

The implied warranty of quiet possession is a continuing obligation, so a seller is liable if a patent granted after the sale interferes with the buyer's use of the goods.

Citation
[1975] 1 WLR 218
Court
Court of Appeal (Civil Division)
Year
1975
Subject
Commercial Law
Topic
Implied terms: title, description, quality and fitness

Facts

Microbeads sold road marking machines to Vinhurst Road Markings. At the time of the sale, a third party had applied for a patent for such machines, but the patent was not granted until after the sale. The patent holder then claimed that Vinhurst's use of the machines infringed its patent. When Microbeads sued for the price, Vinhurst argued that Microbeads was in breach of the implied terms about title.

Legal principle

The Court of Appeal held that Microbeads was not in breach of the implied condition that it had the right to sell, because at the time of the sale no patent had been granted, so it did have the right to sell. However, Lord Denning MR said that the implied warranty that the buyer would enjoy quiet possession of the goods, in what is now section 12(2)(b) of the Sale of Goods Act 1979, is a continuing warranty, which can be broken by events after the sale, such as the grant of a patent. Microbeads was therefore liable for breach of that warranty.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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