UNIT – I Sale of Goods Act, 1930 Condition and Warranty DEPARTMENT OF MANAGEMENT STUDIES UNIT – I Sale of Goods Act, 1930 Condition and Warranty 2/15/2018 Dr. G. MAHESWARAN/AP

Conditions:- a condition is a stipulated essential to the main purpose of the contract ,breach of which gives rise to a right to treat the contract as repudiated .A condition in a contract of sale is the stipulation which constitutes the hardcore of the contract and is essential to the main purpose of the contract kinds of conditions:- a.)express condition-a condition that has been expressly provided for agreed upon by both the parties at the time of the contract of sale . b.)implied conditions-conditions are said to be implied when the law incorporates their existence as implicit to a contract of sale unless otherwise agreed upon between parties .both parties shall be bound by implied conditions unless they are excluded by an express agreement between them Implied conditions are of following seven types:- 1.)condition as to title 2.)condition as to description 3.)condition as to sample 4.)condition as to sample as well as description 5.)condition as to quality or fitness 6.)condition as to merchantability 7.)condition as to wholesomeness 2/15/2018 Dr. G. MAHESWARAN/AP

Warranties:- 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 to a right to reject the goods and treat the contract as repudiated kinds of warranties:- a.)express warranties-a warranty is said to be express when the term of the contract expressly provides for it. At the time of contract of sale, both the parties may agree upon any number of express warranties b.)implied warranties-an implied warranty is one which the law incorporates into a contract of sale. Even when no express representations have been made in connection with a contract of sale, the law implies certain representations as having been made by the parties while entering into the contract .following are the three implied warranties:- 1.)warranty as to quiet 2.)warranty against encumbrances 3.)warranty to disclose the dangerous nature of goods 2/15/2018 Dr. G. MAHESWARAN/AP

Conditions Warranty Stipulations that are essential for main purpose of contract. Non-fulfillment of such will mean loss of foundation of contract. These are termed as ‘Conditions’. A contract of sale cannot be fulfilled unless the condition to it, is fulfilled. In case of breach of condition, the aggrieved party can reject the contract Breach of condition can be treated as breach of warranty if the aggrieved party is happy with compensation. Warranty is collateral to the main purpose of contract. The main contract can be fulfilled even if the warranty is not fulfilled. In case of breach of warranty, the aggrieved party can only claim for damages. Breach of warranty can not be treated as breach of condition. 2/15/2018 Dr. G. MAHESWARAN/AP

Doctrine of caveat emptor is a latin expression that means caution buyer i.e ‘let the buyer beware’ the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made. So, the buyer must examine goods thoroughly Doctrine of caveat venditor means ‘let the seller beware’.the seller shall be under an obligation to inform the buyer of any defeat in the goods sold at the time of the contract ,except in a case where the defeat is obviously known to the buyer .this force the seller to take responsibility for the product and discourages sellers from vending products of unreasonable quality or of dangerous nature 2/15/2018 Dr. G. MAHESWARAN/AP