Knowledge - 'Conditions and Warranties'

Conditions and Warranties

Meaning of Conditions & Warranties

1.Condition: According to Section 12(2), a condition is a stipulation essential to the main purpose of the contract, the breach of which gives a right to repudiate the contract.

2. Warranty: According to Section 12(3), a warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives a right to a claim for damages but not a right to reject goods and to treat the contract as repudiated.

Whether a stipulation in a contract of sale is a condition or a warranty depends, in each case, on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract

Added: 5 years ago