lecture-16 - LESSON 16: THE SALE OF GOODS ACT, 1930...

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Learning Outcomes After reading the lesson, you should be able to know: · The meaning of conditions and warranties · The difference between conditions and warranties · The important conditions and warranties · The doctrine of caveat emptor Introduction In a contract of sale of goods various terms or stipulations regarding quality of the goods, price mode of payment, delivery of goods etc. are very important. These stipulations are known as conditions and warranties. Let us know about it. Conditions and Warranties Stipulations regarding quality of the goods, price mode of payment, delivery of goods etc. are very important are known as conditions and warranties There is a difference between conditions and warranties. While some of them may not be very important but some stipulations may be major terms which go to the very root of contract and any breach may frustrate the contract, while others may be minor terms which are not very vital that their breach may seem to be breach of contract as such. In law of sales major terms are called “Condi- tions” and minor terms are called “warranties” From the terms of contract, it is necessary to distinguish mere statements commendation or praise or expressions made by the seller in reference to goods. The commendatory statements are neither conditions nor warranties. They do not form part of contract and give no right of action. For Example: Where a horse dealer, while praising his horse, states that the horse is very lucky and one whosoever shall purchase it must very soon become a millionaire, his statement, being mere commendatory in nature, does not form a part of the contract and its breach ( i.e., if the buyer of the horse does not actually become a millionaire later) does not give rise to any legal consequences. Condition Sec. 12 (2) defines as ‘A condition’ is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party a right to repudiate the contract itself. In addition he can claim damages from the guilty party Warranty Sec. 12(3) defines ‘A warranty is a stipulation collateral to the main 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 itself’. Conditions are the very basis of contract of sale, so any breach of condition will make contract void, but in the case of warranties, aggrieved parties can claim only damages. There is no hard and fast rule as to which stipulation in a contract is a condition or warranty. Sec 12(4) lays down whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of contract. A
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lecture-16 - LESSON 16: THE SALE OF GOODS ACT, 1930...

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