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Conditions

And
warranties
Condition
[sec12(2)]

A condition is a term (oral or
written) which goes directly 'to the
root of the contract', or is so
essential to its very nature that if it
is broken the innocent party can
treat the contract as discharged.
That party will not therefore be
bound to do anything further under
that contract.
Warranty
[sec12(3)]

A warranty is a term of the contract
which is collateral or subsidiary to
the main purpose of the contract. It
is therefore not so vital as to affect a
discharge of the contract. A breach
of warranty only entitles the innocent
party to an action for damages; he
cannot treat the contract as
discharged.
Conditions v. Warranties 

Two cases involving opera singers
show the difference between
conditions and warranties .
 In Poussard v Spiers and Pond, Mrs. Poussard
was an opera singer.  She agreed to sing in an
opera starting on 28 November.  However, she
became ill and was unable to sing until 4
December.
 The opera company had to hire another singer so
that the opera could start on 28 November.
 They could only get another singer if they hired
her for all the performances of the opera.
 They did this and refused the services of Mrs
Poussard once she was better
 Mrs. Poussard raised a court action to try to make
the company pay her
 However, the court said that Mrs. Poussard
breached a condition of the contract when she
was unable to perform on 28 November
 This was a basic term of the contract
The position was different in
Bettini v Gye
 Bettini was an opera singer
 He agreed to sing in London in a number of theatres
beginning on 30 March
 He also agree that he would arrive in London 6 days before
the first performance in order to practice.
 Bettini became ill and did not arrive in London until 3 days
before the first performance
 The opera company refused to allow him to sing
 They said he had breached the contract
 However, the court said that the part of the agreement
about practicing was a warranty not a term .
 That meant it was not a basic part of the contract.  It was
subsidiary part.  
Types of conditions and
warranties
1) Express – which are expressly
provided in the contract.

2) Implied- which the law implies into
the contract unless the parties
stipulate to the contrary.
Implied conditions
• Condition as to title [sec.14(a)] - seller has the
right to sell.
• Sale by description (sec.15)- goods shall
correspond with the description.
• Condition as to quality or fitness [sec16(1)]
• Condition as to merchantability [sec.16(2)]
• Condition implied by custom- fitness for a
particular purpose may be annexed by the usage of trade
[sec.16(3)]
• Sale by sample (sec.17)
• Condition as to wholesomeness
Implied warranties
1. Warranty of quiet possession [sec.14(b)]
2. Warranty of freedom from
encumbrances [sec.14(c)]
3. Warranty as to quality or fitness by
usage of trade [sec16(4)]
4. Warranty to disclose dangerous
nature of goods
CAVEAT EMPTOR
In a contract of sale of goods the seller
is under no duty to reveal
unflattering truths about the goods
sold. Therefore, when a person buys
some goods, he must examine them
thoroughly. If the goods turn out to
be defective or do not suit his
purpose, he cannot blame anybody
excepting himself.
Thank
you