Northern Territory Consolidated Acts Northern Territory Consolidated Acts62. Implied undertakings as to title, encumbrances and quiet possession
(1) In every contract for the supply of goods to a consumer, other than a contract to which subsection (3) applies, there is:
(a) an implied condition that, in the case of a supply by way of sale, the supplier has a right to sell the goods, and, in the case of an agreement to sell or a hire-purchase agreement, the supplier will have a right to sell the goods at the time when the property is to pass;
(b) an implied warranty that the consumer will enjoy quiet possession of the goods except so far as it may lawfully be disturbed by the supplier or by another person who is entitled to the benefit of any charge or encumbrance disclosed or known to the consumer before the contract is made; and
(c) in the case of a contract for the supply of goods under which the property is to pass or may pass to the consumer - an implied warranty that the goods are free, and will remain free until the time when the property passes, from any charge or encumbrance not disclosed or known to the consumer before the contract is made.
(2) A person is not, in relation to a contract for the supply of goods, in breach of the implied warranty referred to in subsection (1)(c) by reason only of the existence of a floating charge over assets of the person unless and until the charge becomes fixed and enforceable by the person to whom the charge is given.
(3) In a contract for the supply of goods to a consumer in the case of which there appears from the contract, or is to be inferred from the circumstances of the contract, an intention that the supplier should transfer only such title as the supplier or a third person may have, there is:
(a) an implied warranty that all charges or encumbrances known to the supplier and not known to the consumer have been disclosed to the consumer before the contract is made; and
(b) an implied warranty that:
(i) the supplier;
(ii) in a case where the parties to the contract intend that the supplier should transfer only such title as a third person may have - that person; and
(iii) anyone claiming through or under the supplier or that third person otherwise than under a charge or encumbrance disclosed or known to the consumer before the contract is made,
will not disturb the consumer's quiet possession of the goods.