This document discusses the differences between conditions and warranties in contracts for the sale of goods. It states that conditions are essential terms that if breached allow the contract to be voided, while warranties are collateral terms and their breach only allows for a claim for damages, not termination of the contract. It also provides examples of conditions and warranties from case law on the sale of defective asbestos roofing sheets.

1. EP JOHN
Sec B
I MBA
DMS, SOM
PONDICHERRY

2. BUY GOODS
- SATISFY NEEDS
- PRODUCE OTHER GOODS
AGREE TO TERMS
- SELLER & BUYER
TERMS OF SELLER – CONDITIONS
TERMS OF BUYER – WARRANTY

3. SALE OF GOODS
FETCHES REVENUE
CONDITIONS & WARRANTIES
DELIVERY OF GOODS
PASSING OF PROPERTY
EXCEPT J & K

4. ATLEAST TWO PARTIES
CONTRACT OF SALE
TRANSFER OF PROPERTY
PRICE CONSIDERATION
ESSENTIALS OF VALID CONTRACT

5. ACCORDING TO SEC 12 (2) OF SALE OF
GOODS ACT
A CONDITION IS A STIPULATION
ESSENTIAL TO THE MAIN PURPOSE OF
CONTRACT, THE BREACH OF WHICH
GIVES RISE TO A RIGHT TO TREAT THE
CONTRACT AS REPUDIATED

6. ACCORDING TO SEC 12 (3) OF SALE OF
GOODS ACT
A WARRANTY IS A
STIPULATION, COLLATERAL TO THE MAIN
PURPOSE OF A 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

7. PARTICULAR CONDITION WARRANTY
NATURE OF FUNDAMENTAL, SUPPORTIVE,
STIPULATION ESSENTIAL FOR MAIN COLLATERAL FOR THE
PURPOSE OF CONTRACT
CONTRACT
CONSEQUENCES THE CONTRACT MAY MAY GIVE RISE TO A
OF BREACH BE AVOIDED RIGHT TO CLAIM FOR
COMPENSATION
TREATMENT OF BREACH OF BREACH OF
STIPULATION CONDITION CAN BE WARRANTY CANNOT
TREATED AS BREACH BE TREATES AS
OF WARRANTY BREACH OF
CONDITION

8. Geetha Theatre at Shoranur, Pallakad, Asbestos
bought from Coimbatore worth Rs 45,815/- on
16 Nov 1985.
Dec 1985, after monsoon Jun 1986.
Reps - Problem of ventilation, lime coating.
Moved to local court and then to high court.

9. Bought by Haridas Bhagat (Agent) Oct 85.
Reps - Problem of ventilation, lime coating.
Inspected by Commissioner 11 Apr
1989, found defective curing of sheets
(fissures).
QC of company.
Order placed and info on tele, made available
at short notice.

10. Caveat emptor (let the buyer beware)
Buyer take chance/care
Sec 16 – there was an implied warranty as to
the quality of articles sold that it was fit for
the purpose for which it was sold.
Judgment 75% compensation incl all
expenses.

11. THANK YOU