Conditions and Warranties
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a 'condition' under the Sale of Goods Act, 1930?
A condition is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party the right to treat the contract as repudiated.
What is the legal effect of a breach of warranty under the Sale of Goods Act, 1930?
Buyer can claim damages but cannot reject the goods.
What is a 'warranty' under the Sale of Goods Act, 1930?
A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives the aggrieved party only a right to claim damages, not to repudiate the contract.
What is the legal effect of a breach of condition under the Sale of Goods Act?
Buyer may reject goods, repudiate contract, and claim damages.
Can a breach of condition be treated as a breach of warranty?
Yes, the buyer may elect to treat a breach of condition as a breach of warranty instead of repudiating the contract, thereby limiting the remedy to damages only.
Under which Act are conditions and warranties in sale of goods governed in India?
Sale of Goods Act, 1930.
What is an implied condition as to title under the Sale of Goods Act?
There is an implied condition on the part of the seller that, in a sale, the seller has the right to sell the goods, and in an agreement to sell, the seller will have the right to sell at the time property is to pass.
What is an implied condition as to quality in a sale where the buyer relies on seller's skill?
Goods must be reasonably fit for the buyer's disclosed purpose.
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