Sales of Goods Act, 1930 - Condition and Warranty
?As per section 12(2) of Sale of Goods Act, 1930 A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.
So a Condition is an essential stipulation to the contract breach of which makes the contract voidable and gives a right to repudiate the contract and to claim damages.
On the other hand As per section 12(3) of Sale of Goods Act, 1930 A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.
Warranty is a stipulation which is not essential but only collateral to the contract breach of which does not gives the right to repudiate the contract but person can claim damages.
In case of breach of both warranty and condition damages can be claimed however contract becomes voidable only in case of breach of condition and not in case of Warranty.
Types of Condition and Warranty
Condition and warranties may be
Expressed Condition and Warranties: They are said to be express when the terms of the contract expressly provide for them. If the two contracting parties desire they may put the contents of any specific statement or promise which has taken place between them as per as the description of the thing contracted for. This then shall be treated as express condition. The parties are at liberty to impose any condition or warranty by an express agreement in a contract of sale.
Conditions as to title or ownership
Sale by description
Where the buyer has never seen the goods but buys them only on the description provided by the seller. In such a situation if the goods do not match with the description then the buyer has the right to reject the goods.
Where the buyer has seen the goods, it can be treated a sale by description, only if he purchases those goods relying on not on what he has seen but what was described to him by the seller about the goods.
The methods of packing may also form part of the description if packing is described by the seller. (Moore & Co. Vs. Landauer & Co)
Sale by sample
In Sale by sample seller has shows a sample of the goods to the buyer and agrees to supply the goods according to the sample. Here goods supply should match the sample.
Warranty as to quiet possession
Warranty of freedom from encumbrances
Warranty to disclose Dangerous nature of goods
These online MCQ Mock tests and MCQ questions includes all main concepts of the chapter in CS foundation Business Environment and Entrepreneurship