(ii) Free from Any Encumbrances

(ii) Free from Any Encumbrances The goods bought must not have been subject to any charge or right in favour of a third party. If the buyer’s possession is disturbed by reason of the existence of any encumbrance, he is entitled to claim damages for breach of warranty.eg. ‘X’ borrowed Rs. , from ‘Y’ and hypothecated his autorickshaw with ‘Y’ as security. Later on, ‘X’ sold the autorickshaw to ‘Z’ who bought it in good faith. In this case, ‘Z’ can claim damages from ‘X’ because his possession is disturbed by ‘Y’ having a encumbrance on the auto.