Write a note on warranty and condition. OR Define and distinguish between warranty and conditions with reference to the contract of the sale and goods act

by • 24/06/2013 • GeneralComments (0)366

Q.1:     Write a note on warranty and condition. OR Define and distinguish between warranty and conditions with reference to the contract of the sale and goods act.

Ans:     In modern businessmen era nobody is ready to buy or sell goods unless he knows absolutely the terms, trends or stipulation regarding quality of goods; the price, mode of payment and delivery. These stipulations help the buyer and seller to buy or sell goods, which are more appropriate to their requirements.

There are two types of terms in a contract of sale, which are to be performed by the parties for the fulfillments of obligation of the contract. These terms are in the* nature of promises or undertaking, which are known as stipulation. Some of the terms are very important that the other party as the breach of the contract can take their breach and they are known as condition. On the other hand there are certain undertakings in a contract if sale of goods, which are to be fulfilled, but they are not so important that their breach can cause or one treated as a breach of the whole contract and it is known as warranties.

CONDITION

Sale of Goods Act Section 12 (2) defines it in the following words,

“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 simple words conditioned is stipulation, which is essential to the main purpose of the contract. It is a foundation upon which are whole structure of contract of sale is based. It has direct link to the root or substance of the contract. Condition is the lifeblood of contract of sale goods. In case of breach of condition buyer has right to repudiate the contract.

 

EXAMPLE

X agrees to sell, 5 Honda 70cc Motor Cycle to V. But X delivers 5 Honda 125cc. It is case of breach of condition, Y has a right to reject the delivery of Motor Cycle and claim damages because the cost of Honda 125cc is much more then Honda 70cc. He has a right to accept this wrong delivery if he feels that the contract is fit for his requirements.

 

WARRANTY

Sale of Goods Act Section 12 (3) defines the warranty in the following words,

“A warranty is a stipulation collateral to the main purpose of the contract, the breach if which gives the aggrieved party a right to sue for damages only, and not avoid the contract itself.

The above definition shows that for the implementation of a contract warranty is not essential. For the breach of warranty only damages can be claimed.

Warranty has no primary importance as the condition. So it does not direct, link to the root of contract. In case of breach of warranty a buyer can only claim damages, he is not in position to repudiate the contract. In other word the breach of any stipulation, which may spoils, the right of aggrieved party is condition and where the breach of any stipulation slightly after of one contracting party is termed as warranty.

 

EXAMPLE

X sells his machinery to Y at cost of Rs. 50000/= and gives the warranty that estimated life of his machinery is 10 years. If machinery is absolute and unsuitable for work after 4 years. It is known as breach of warranty. The Y can claim damages from X.

 

 

DISTINCTION BETWEEN CONDITION AND WARRANTY

Condition Warranty

(1)

Importance:

Condition is a stipulation, which is essential to the main purpose of the contract.

 

Warranty is a stipulation, which is not essential to the main purpose of the contract.

(2)

Basis:

Condition has direct link to the root or substance of the contract.

 

Warranty does not direct link to the root of contract.

(3)

Rights of Buyer:

In case of breach pf condition buyer has right to repudiate the contract.

 

In case of breach of warranty, the buyer. Can claim only damages and not repudiate the contract.

(4)

Effects of Breach:

A breach of condition may be treated as a breach of warranty.

 

A breach of warranty cannot be treated as a breach of condition.

(5)

Position of Buyer:

The buyer has an option claim damages instead of repudiate the contract.

 

The buyer can only claim damages. He cannot repudiate the contract.

 

Man, who is better adapted to making her life https://eduessayhelper.org unendurable than any?
Pin It

Leave a Reply