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TOPIC : CONDITIONS & WARRANTIES(CAVEAT EMPTOR)
(SOGA,1930)
WHAT IS CONDITION?
• A CONDITION IS A STIPULATION ESSENTIAL TO THE MAIN PURPOSE OF THE
CONTRACT, THE BREACH OF WHICH GIVES...
WHAT ARE IMPLIED CONDITIONS?
• IMPLIED CONDITIONS ARE THOSE, WHICH ARE PRESUMED BY LAW TO BE PRESENT
IN THE CONTRACT.
• IM...
CONDITION AND WARRANTY DISTINGUISHED
[SEC.12(2)(3)]
CONDITION
• IT IS ESSENTIAL TO THE MAIN
PURPOSE OF THE CONTRACT.
• THE...
WHAT IS WARRANTY?
• A WARRANTY IS A STIPULATION COLLATERAL TO THE PURPOSE OF THE
CONTRACT, THE BREACH OF WHICH GIVES THE A...
BREACH OF WAARANTY(SEC.13)
• WHEN BUYER WAIVES THE PERFORMANCE OF THE CONDITION.
• WHEN BUYER ELECTS TO TREAT BREACH OF TH...
WHICH ARE WARRANTIES IMPLIED?
• WARRANTY AS TO QUIET POSSESSION.
• WARRANTY AS TO GOODS TO BE FREE FROM
ENCUMBRANCES.
TYPES OF CONDITION
AND WARRANTY
TYPES OF CONDITION AND WARRANTY
EXPRESSED CONDITION IMPLIED CONDITION
AND WARRANTY AND WARRANTY
IMPLIED CONDITION IMPLIED ...
• A)
EXPRESS CONDITION AND WARRANTY :
When both the buyer and seller agree to provide for
certain Terms and conditions, ei...
• B)
IMPLIED CONDITION AND WARRANTY :
It is open to the parties to include in their contract any number
of express conditi...
Conditions & warranties(caveat emptor)
Conditions & warranties(caveat emptor)
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Conditions & warranties(caveat emptor)

It is a comparison of conditions and warranties in caveat emptor

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Conditions & warranties(caveat emptor)

  1. 1. TOPIC : CONDITIONS & WARRANTIES(CAVEAT EMPTOR) (SOGA,1930)
  2. 2. WHAT IS CONDITION? • A CONDITION IS A STIPULATION ESSENTIAL TO THE MAIN PURPOSE OF THE CONTRACT, THE BREACH OF WHICH GIVES RIGHT TO REPUDIATE THE CONTRACT AND TO CLAIM DAMAGES. EXAMPLE : P GOES TO R, A HORSE DEALER, AND SAYS, I WANT A HORSE WHICH CAN RUN AT A SPEED OF 30 KM. PER HOUR. THE HORSE DEALER POINTS OUT A PARTICULAR HORSE AND SAYS, THIS WILL SUIT YOU. P BUYS THE HORSE. LATER ON P FINDS THAT THE HORSE CAN RUN ONLY AT A SPEED OF 20KM./HR. THERE IS A BREACH OF CONDITION, P CAN REPUDIATE THE CONTRACT, RETURN THE HORSE TO R AND GET BACK THE PRICE.
  3. 3. WHAT ARE IMPLIED CONDITIONS? • IMPLIED CONDITIONS ARE THOSE, WHICH ARE PRESUMED BY LAW TO BE PRESENT IN THE CONTRACT. • IMPLIED CONDITION MAY BE NEGATED OR WAIVED BY AN EXPRESS AGREEMENT. 1. CONDITION AS TO TITLE 2. SALE BY DESCRIPTION 3. SALE BY SAMPLE 4. SALE BY SAMPLE AS WELL AS DESCRIPTION 5. CONDITION AS TO QUALITY OR FITNESS 6. CONDITION AS TO WHOLESOMENESS
  4. 4. CONDITION AND WARRANTY DISTINGUISHED [SEC.12(2)(3)] CONDITION • IT IS ESSENTIAL TO THE MAIN PURPOSE OF THE CONTRACT. • THE AGGRIEVED PARTY HAVE A RIGHT TO REPUDIATE THE CONTRACT AND CLAIM FOR DAMAGES. • THIS CAN BE TREATED AS A BREACH OF WARRANTY. WARRANTY 1. IT IS COLLATERAL TO THE MAIN PURPOSE OF THE CONTRACT. 2. THE AGGRIEVED PARTY HAVE A RIGHT TO CLAIM FOR DAMAGES ONLY. 3. THIS CAN NOT BE TREATED AS A BREACH OF CONDITION.
  5. 5. WHAT IS WARRANTY? • A WARRANTY IS A STIPULATION COLLATERAL TO THE PURPOSE OF THE CONTRACT, THE BREACH OF WHICH GIVES THE AGGRIEVED PARTY A RIGHT TO SUE FOR DAMAGES ONLY, AND NOT TO AVOID THE CONTRACT. EXAMPLE : ASSUME THAT A FARMER, INTENDING TO PLANT NO-TILL SOYBEANS, APPROACHES A SELLER TO BUY HERBICIDE. ASSUME FURTHER THAT THE BUYER REQUESTS A PARTICULAR HERBICIDE MIX BUT THE SELLER SUGGESTS A LESS EXPENSIVE MIX. IF THE CHEMICALS FAIL TO KILL CRABGRASS AND THE FARMER HAS A LOW YIELD OF SOYBEANS, THE FARMER COULD SUE THE SELLER FOR BREACH OF THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE BECAUSE THE SELLER KNEW WHAT THE FARMER REQUIRED.
  6. 6. BREACH OF WAARANTY(SEC.13) • WHEN BUYER WAIVES THE PERFORMANCE OF THE CONDITION. • WHEN BUYER ELECTS TO TREAT BREACH OF THE CONDITION AS BREACH OF WARRANTY AND DOES NOT TREAT THE CONTRACT AS VOID. • WHEN THE CONTRACT OF SALE IS INSEPARABLE AND THE BUYER HAS ACCEPTED THE WHOLE GOODS OR PART THEREOF. • WHEN THE FULFILLMENT OF ANY CONDITION OR WARRANTY IS EXECUTED BY LAW BY REASON OF IMPOSSIBILITY OR OTHERWISE.
  7. 7. WHICH ARE WARRANTIES IMPLIED? • WARRANTY AS TO QUIET POSSESSION. • WARRANTY AS TO GOODS TO BE FREE FROM ENCUMBRANCES.
  8. 8. TYPES OF CONDITION AND WARRANTY
  9. 9. TYPES OF CONDITION AND WARRANTY EXPRESSED CONDITION IMPLIED CONDITION AND WARRANTY AND WARRANTY IMPLIED CONDITION IMPLIED WARRANTY
  10. 10. • A) EXPRESS CONDITION AND WARRANTY : When both the buyer and seller agree to provide for certain Terms and conditions, either by words spoken And written, they are known as express condition and warranty .
  11. 11. • B) IMPLIED CONDITION AND WARRANTY : It is open to the parties to include in their contract any number of express conditions and warranties. But in addition to what the contract may provide, the law implies into every sale of goods a number of conditions and warranties. They are read into every contract of sale unless they are expressly excluded. These are called as implied conditions and warranties . section 14 to 17 deals with implied conditions and warranties.

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