Can you analyze this clause of a sale agreement under the Sale of Goods Act, 1930: 'The Seller guarantees that the goods are free from any charge or encumbrance in favor of any third party.'?
This clause provides a warranty from the seller that the goods are free from any claims by third parties. Under the Sale of Goods Act, it is implied in a contract of sale that the seller has a right to sell the goods and the buyer shall enjoy quiet possession of the goods. Any breach of this warranty could lead to a claim for damages.