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    Law of Sale of Goods: Condition and Warranty

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    Simran
    This document discusses conditions and warranties in contracts for the sale of goods under Indian law. [1] Conditions are essential terms that if breached allow the aggrieved party to terminate the contract, while warranties relate to collateral matters and only allow a claim for damages. [2] Conditions can be treated as warranties if the buyer voluntarily waives the right to terminate or accepts the goods after discovering the breach. [3] The key differences between conditions and warranties are their importance to the purpose of the contract and the remedies available for breach.

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    Law of Sale of Goods: Condition and Warranty

    Uploaded by

    Simran
    53 views11 pages
    This document discusses conditions and warranties in contracts for the sale of goods under Indian law. [1] Conditions are essential terms that if breached allow the aggrieved party to terminate the contract, while warranties relate to collateral matters and only allow a claim for damages. [2] Conditions can be treated as warranties if the buyer voluntarily waives the right to terminate or accepts the goods after discovering the breach. [3] The key differences between conditions and warranties are their importance to the purpose of the contract and the remedies available for breach.

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    This document discusses conditions and warranties in contracts for the sale of goods under Indian law. [1] Conditions are essential terms that if breached allow the aggrieved party to terminate the contract, while warranties relate to collateral matters and only allow a claim for damages. [2] Conditions can be treated as warranties if the buyer voluntarily waives the right to terminate or accepts the goods after discovering the breach. [3] The key differences between conditions and warranties are their importance to the purpose of the contract and the remedies available for breach.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    53 views11 pages

    Law of Sale of Goods: Condition and Warranty

    Uploaded by

    Simran
    This document discusses conditions and warranties in contracts for the sale of goods under Indian law. [1] Conditions are essential terms that if breached allow the aggrieved party to terminate the contract, while warranties relate to collateral matters and only allow a claim for damages. [2] Conditions can be treated as warranties if the buyer voluntarily waives the right to terminate or accepts the goods after discovering the breach. [3] The key differences between conditions and warranties are their importance to the purpose of the contract and the remedies available for breach.

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    of 11

    LAW OF SALE OF GOODS

    CONDITION AND WARRANTY

    BY- AYUSH PATEL


    CONDITIONS AND WARRANTIES

     In a contract of sale, usually parties


    makes certain statements or the
    stipulation about the goods under sale
    or purchase. These stipulations in a
    contract of sale made with reference to
    the subject matter of sale. It may be
    either a condition or warranty.
    Conditions

     A condition is a stipulation essential to


    the main purpose of the contract, the
    breach of which gives right to repudiate
    the contract and claim damage [Section
    12(2)].
    Example

    X want to purchase a horse from Y, which


    can run at the speed of 50 Kms/hours. Y
    pointing at particular horse says “this
    horse will suit for you.” X buys the horse
    but later on find that the horse can run at
    speed of 30 kms/hour. This is a breach of
    condition because the stipulation made by
    the seller forms the very basis of the
    contract.
    Warranties

     Warranty is a stipulation collateral to


    the main purpose of the contract, the
    breach of which gives rise to a claim for
    damage but not a right to reject the
    goods and treat the contract as
    repudiated[Section 12(3)]
    Example

     A man buys a particular horse, which is


    warranted to be fast to ride and drive.
    The horse turns out to be vicious, the
    buyer’s only remedy is to claim
    damages. This is a breach of
    warranty, because the stipulation made
    by the seller was only a collateral one
    When condition to be treated as
    warranty
    1. Voluntary waiver of condition- Although on a breach of
    condition by the seller , the buyer has a right to treat the
    contract as repudiated and reject the goods, but he is not
    bound to do so. He may instead elect to waive the condition
    that is to treat the breach of condition as breach of warranty
    and accept the goods and sue the seller for damages for
    breach of warranty.

    2. Acceptance of goods by buyer- Where the buyer has


    accepted the goods and subsequently he comes to know of
    the breach of condition, he cannot reject them, but can only
    maintain an action for damages. This case does not depend
    upon the will of the buyer but the law compulsorily treats a
    breach of condition as a breach of warranty.
    DIFFERENCE BETWEEN CONDITION AND
    WARRANTY

    1.As to value. [Sec.12(2)(3)]


    A condition is a stipulation which is essential to the main purpose
    of the contract, whereas a warranty is a stipulation which is
    collateral to the main purpose of the contract.

    2.As to breach.
    The breach of a condition gives the aggrieved party the right to
    repudiate the contract and also to claim damages , whereas
    breach of warranty gives the aggrieved party a right to claim
    damages only.

    3.As to treatment.
    A breach of condition may be treated as a breach of warranty but a
    breach of warranty cannot be treated as a breach of condition.
    Types of conditions and warranties

     Express – which are expressly provided in the contract.


     They are said to be express when at the will of the parties
    they are inserted in the contract
    Implied conditions

    The implied conditions and warranties ,are those which


    are presumed by law to be present in the contract though
    they have not been put into it in expressed words.
    1. Condition as to title[sec.14(a) -seller has right to sell.
    2. Sale by description (sec.15)- goods shall correspond with the
    description.
    3. Condition as to quality or fitness [sec16(1)]
    4. Condition as to merchantability [sec.16(2)]
    5. Condition implied by custom[sec.16(3)]- fitness for a particular
    purpose may be annexed by the usage of trade
    6. Sale by sample (sec.17)
    7. Condition as to wholesomeness

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