Opinion by
Defendant appeals from entry of judgment for plaintiff on the pleadings upon its motion under Pa. R. C. P. 1034,
As contended by defendant, on such a motion we must accept as true all facts well pleaded and inferences reasonably deducible therefrom; and judgment should be entered only where it is clear that no meritorious legal defense is raised:
Toff v. Vlahakis,
By its pleadings, defendant raises the defense of failure of consideration. Failure of consideration occurs where the consideration bargained for does not pass, either in whole or in part, to the promisor. This is not the instant case. The pleadings admit receipt of the parts and aver only that they “were obsolete, useless and otherwise unfit to be used.” The notes were given in payment of the balance due for the parts admittedly delivered some five months previously.
Obviously defendant must rely on .a breach of vendor’s warranty as to quality or fitness, rather than failure of consideration, as a defense to the action: Its pleadings seek to establish only that the quality, grade or nature of the parts was not as it should have beén. Defendant contends, however, that the Sales Act of *570 1915, P. L. 543, 69 PS §1 et seq., has no applicability to the instant case. This is based on Section 75 of the Act, which provides: “The provisions of this act . . . do not apply, unless so stated, to any transaction in the form of a contract to sell or a sale which is intended to operate by way of mortgage . . . or other security.” The contention is that the notes are “other security.” But the provision applies only to the usual situation where collateral, e.g. stock, bonds or notes, is given as security until the purchase price is paid. It does not apply where, as here, the notes are delivered in actual payment for the goods, not as security for payment.
Section 49 of the Sales Act, 69 PS §259, provides that notice of breach of warranty must be given, and that it must be “. . . within a reasonable time after the buyer knows or ought to know of such breach . . .” (Italics supplied). Considering the telephone conversation between the parties as notice of breach of warranty, there remains a question whether it was given within a reasonable time after acceptance of the goods or within a reasonable time after defendant “ought to know of such breach.”
“What is a reasonable time is a question of fact for the jury; but where the facts are undisputed, and but one inference can be drawn therefrom as to reasonableness, the question becomes one for the court”:
Tinius Olsen Testing Machine Co. v. Wolf Co.,
Certainly the condition, quality, or type of the parts could have been determined by the casual inspection of an experienced individual. In any event, we cannot but conclude that there was delay of inspection, or that, inspection being had, defendant delayed in giving plaintiff notice of discovered defects. In either event, the passage of such time between delivery of parts or delivery of the notes, and the giving of notice, was as a matter of law an unreasonable time. Under the circumstances, defendant ought to have known of alleged defects much in advance of the day it gave notice, and it did not satisfy the test of reasonableness required by the Act. Cf.
Aaron Bodek & Son v. Avrach,
Judgment affirmed.
