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)].
ExampleX 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 warranty1. 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 WARRANTY1.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 conditionsThe 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 trade6. Sale by sample (sec.17)7. Condition as to wholesomeness