A seller sells undergarments which cause skin disease to buyer. What is the liability of the seller?

Undergarments bought from a seller who deals in them carry the implied conditions of fitness for purpose and merchantable quality under section 16(1) and (2) of the Sale of Goods Act, 1930 (compare Grant v Australian Knitting Mills, 1936). A latent defect that causes skin disease breaches an implied condition, so "He is liable for breach of a condition", not merely of a collateral warranty. Caveat emptor does not protect the seller against such a latent defect.