This document discusses the differences between conditions and warranties in contracts for the sale of goods. A condition refers to a stipulation that is essential to the main purpose of the contract, and breach of a condition allows the aggrieved party to terminate the contract. A warranty refers to a stipulation that is collateral to the main purpose, and breach of a warranty only allows claiming damages, not contract termination. Examples of each are provided.

3.  Representation: Statement made by the
seller before entering into a contract.
 Stipulation: If such representation forms an
integral part of the contract and other party
relies upon it.

4.  “ 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.”
 It goes to the root of the contract.
 Its non fulfillment upsets the very basis of
the contract.

5.  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 Rand get
back the price

6.  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 right to reject the goods and treat the
contract as repudiated.

7.  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.

8. CONDITION
 It is a stipulation which is
essential for the main
purpose of the contract.
 In case of breach of a
condition, the aggrieved
party can repudiate the
contract of sale.
WARRANTY
 It is a stipulation which is
collateral to the main
purpose of the contract.
 In case of breach of
warranty, the aggrieved
party can claim damages
only.

9. CONDITION
 A breach of condition may
be treated as breach of
warranty.
 Contract can’t be fulfilled
until the condition is
fulfilled.
WARRANTY
 The breach of warranty
cannot be treated as a
breach of a condition.
 A contract is complete
even if the warranty has
not been fulfilled.

10. 1) Condition as to title
2)Condition in a sale by description
3)Condition in a sale by sample
4)Condition in a sale by sample as well as by
description
5)Condition as to fitness or quality
6)Condition as to merchantability
7)Condition as to wholesomeness

11.  Warranty of Quiet possession.
 Warranty against encumbrances.
 Warranty to disclose dangerous natures of
goods.
 Warranty implied by Customs

12. Caveat emptor means “let the buyer be aware”.
According to the doctrine of caveat emptor it is
the duty of buyer to be careful while purchasing
goods of his requirement and the seller is not
bound to disclose every defect in goods of which
he may be cognizant.
While making purchase the buyer depends on his
own skills and makes a bad choice and hence he
can’t hold the seller liable for the same, as there
is no implied undertaking by the seller.

13. Let the ‘Buyer Beware'.The maxim Caveat Emptor
does not apply & the contract will be subject to
the implied conditions under the following
circumstances :
1. Seller makes a false representation amounting
to fraud or conceals defect in goods.
2. Goods are purchased by description and are not
of merchantable quality.
3. Goods are purchased by sample but does not
correspond to them.

14. 4. Buyer makes his purpose for purchase clear
and goods are not fit for that particular
purpose.
5. Goods are purchased by description and by
sample and don’t correspond to them.
6. Goods are not fit according to the usage of
trade.

16.  The general rule is that risk follows
ownership.
 It says that Unless otherwise agreed, the
good remains at the seller’s risk until the
property therein is transferred to the buyer
but when the property therein is transferred
to the buyer, the goods are at the buyer’s risk
whether delivery has been made or not.

17.  EXCEPTIONTOTHE GENERAL RULE
 1. Agreement to the Contrary.
 2. Delay in delivery by a party.
 3. Usage of trade
 4. Loss caused by a party because of
carelessness.