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But with purchase of gadgets very few bothers about to read all the documents and read all the
conditions like warranty card and all.. And suppose we get any defected product or default product we
loss our claim because of insufficient or lack of documents and because of which one cant claim any kind
of warranty.
As we all knows the sale or purchase of goods forms contractual relations and these contractual
relations leads to certain rights and liabilities. When there is a breach of these rights and liabilities the
breach of contracts arises. In contract of sale the buyer and seller also makes certain statements on the
stipulation or the course of trade. This stipulation can either be a condition or warranty about the sale of
goods. Some times the stipulation can be treated as the warrant and some times as conditions.
The seller of the commodity makes various claims about the goods which he is offering like quality,
utility, use, suitability, durability etc.. After listening all these assurances the buyers get agree on various
claims and these assurances may be act just like part of communication by seller and not a contract. but,
sometime buyer believes on that forms a contracts. As the assurance which is given by buyer and
accepted by buyer will forms stipulation.
Stipulation can be treated to form its nature which will be subsidiary or an expression. If the stipulation
forms on the basis of the contracts then ot forms the condition and if its on collateral to the main
purpose that means less important than contracts, that known as warranty. Neither the warranty or
condition have uniform definition in English law. Some time they can be treated as one word.
As we are talking about conditions and warranties, we should know about its origin. The status which
deals with the terms condition and warrants comes under the head of Sale of Goods 1930. Its very old
type of contracts. The term condition get defined under the sale of goods act as ' a condition ia a
stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to
treat the contact repudiated.'
The term warranty is define as 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 sight to reject the goods and treat the
contract as repudiated. As I mention earlier that warranty as stipulation is not essential to the main
purpose of the contracts, but it is the subsidiary, so in case of breech, buyer cannot repudiate the
contract but can claims the damages.
Conditions
A condition can be termed as one of the crucial term in agreement of sale which is mention by the buyer
to the seller which can me implied or expressed. The buyer can cancel the proposal in case of non-
compliance with the condition mentioned by the seller. Condition may be expressed or implied. If there
is a breech of conditions then there is a right to aggrieved party to treat the contract as repudiated. In
case if the buyer had paid, then he is also having the right to recover the price and can also claim the
damages for breach.
For ex. If the buyer expressly mentions that good should be delivered before stipulated date, then that
date will be taken as condition as buyer expressly mentioned it at the time of contract.
Types Of Conditions:
Expressed Condition
The term defines the statement as a condition which says that something should be exist or should be
there for the fulfillment of contract. These condition are generally imperative to the functioning and are
done only when both the parties are agree on the said or expressed condition.
Implied Condition
In this type of contract there are several conditions which are implied to the parties in differefent kind of
contrcts of sale. The conditions exists even if they have not been there in contracts.
The implied contracts comes under the section 14 to 17 of Sale of Goods Act, 1930 which are as
follow:
Here are the several conditions which are implied at the time of sale:
2. In case of selling, at the time of performing contracts one will have the right to
sell the contracts.
And if the seller has no title to sell he given good then the buyer can refuse to
take those goods and then he will entitle to recover full price paid by him.
o In section 16 (2) the good should be of merchantable quality which means that the
goods offered by seller should of of quality which would be accept and satisfies
reasonable man. For example- If A orders a bag of wheat from B and it got damage by
rain the condition of merchantability get break here by B as now its unfit to use.
However the examination may not reveal the defect but it the goods will come out with
defect then he have a chance to repudiate the contract even if the goods are approved.
o In the light of section 17 that is a contract of sale of sample, the implies conditions will
as follow:
1. The sample product would corresponds with the actual product in all the
aspects like quality, colour, size etc
3. The goods which are free from any type of defect may be render as
unmerchantable.
With reference with section 15, the sale by description and sale by sample, the good which will be
supplied to the buyer should be in accordance with description as well as sample. In case of Nichol v.
Godis (1854) the seller sell one of the refined rape oil. The oil which is delivered was same which was
sell in sample but there was one fault that it was a mixture of other oil too. So it was held that seller was
liable to refund the amount and paid damages also.
Warranties
As the term warranties is an additional stipulation over the main purpose of contract. If there is a breech
of warranty then the aggrieved or suffered party cannot repudiate the contract and claim the contract.
In other words warranty is a stipulation which is not essential to the main purpose of contract and if it
will get breach then buyer can only claim the damages.
Kind Of Warranties
Expressed warranty:
In this the warranty generally both the parties are interested in contracts and warranty is
accepted by both the parties expressly.
Implied warranty:
In this type of warranty the parties generally assumes that the warranties have been
incorporated at the time of contract of sale. The warranties which are implied are not
specifically mentioned in the contracts.
Example – P purchases second hand car from Q and he have no idea that the car which he have
purchased is stolen one. After he used the car, he was suppose to return the car. In this P is
entitle to sue Q for the breach of warranty.
Example- X purchases a horse from Y and the horse is lunatic then it's the duty of Y to inform the
X about the danger and whole scenario. While riding, the horse gt an attack because of which X
fell down and got fracture. in the Y is entitle to claim damages to Y.
Conditions Warranties
In this the stipulation can be consider as the basis of In this the stipulations is additional to the main
contract contracts
If the condition get breach then it leads to If the warranty got breach then the injured party
termination of contracts will et the compensation only
The injured party can refuse to accept the goods as Only damages can be claimed by injured party in
well as claim damage in case of breach of condition case of breach of warranty
The section 13 with the breach of condition sinks to the level of breach of warranty. here we will discuss
some points:
1. When the condition is waived by the buyer, then the condition will be considers as warranty
2. When the condition would sink to he level of warranty then the buyer himself treat the breach
of condition as a breach of warranty.
3. Wherein the contract is indivisible and the buyer has accepted the whole or part of goods, the
condition is treated as a warranty. Consequently, the contract cannot be repudiated.
In a case of Court of Appeal Wallis v. Russel (1902) 2 IR 585, it is laid down that caveat emptor also
implies that 'the buyer must also take care of goods.” this applies on the purchase of the things which
buyer can exercise on his own skill and judgment eg. Book, picture etc(also known as specific goods ), it
also applies in the cases where by usage or by a term of contract it is implied that the buyer shall not
rely on the skill and judgment of the seller.
Exceptions to The Rule of Caveat emptor (Section 16 of The Sale of Goods Act, 1930)
1. When the buyer put the concern in the mind of the seller and gives the reason to buy the goods
and relies on the skills of seller and the goods comes under the course of sellers business, then it
becomes the duty of the seller to deliver the reasonable and fit goods to buyer.
2. When seller sold the goods by using sample and if the sample goods does matches with the
actual goods
3. When goods sold with the help of both description and sample and goods match with sample
but not with description
Conclusion
In this paper we have seen different aspects related to the conditions and warranties in respect to their
necessity, significance and related provisions in law etc. In the contract of sale of goods the seller makes
some representation or statements or makes certain claims about the product which he intends to sale
to buyer, that representation or statement is known as stipulation. that stipulation in the contract of
sale can be term as condition or warrant.
The term condition is a stipulation on which whole contract is based. it is the essential ingredient to the
purpose of contract. when there is any breach of condition then it will be considered as breach contract.
In this situation buyer will get the right to repudiate the contract and can claim the damages.
The term warranty is a stipulation collateral to the main purpose of the contracts. in case of breach of
warranty the buyer have write to claim but he cannot repudiate whole contract. One can consider the
breach of condition as breach of warranty but breach of warranty cannot be considered as breach of
condition.
We also see that there are two types of condition and warranties ie implies and expressed. The
expressed condition and warranties consist of the statements or warranties or conditions which are
expressly agreed by both the parties at the time of contract. where as implied conditions and warranties
are those which are implied by the law itself, unless otherwise agreed upon by the parties. Cavite
emptor is also an important concept which tell us that “let the buyer be aware ”. it also have certain
restrictions in contract of sale of goods.
The main aim of the provision of conditions and warranty provided in Sale of Goods Act is to protect the
buyer from any type of fraud by the seller. At first place it is the duty of seller not to provide defective
product and buyer should enquire about the quality of product before entering into contract. In order to
make valid contract of purchase and selling without any harm to anyone buyer should convey the
purpose of buying and seller should also give reasonable description of the product.
References
Lord, R. A. (1980). Some thoughts about warranty law: express and implied warranties
Jain, s. (2015). Contracts of sale: terms, conditions and warranties with specialreference to sale
of goods act harma, V. (n.d.).
Implied conditions and warranties under the sale of goods Act1930 with reference to the rule of
caveatLegal service india
Pandey, A. (2018). Implied conditions and warranties under the sale of goods Act.
Websites:
http://egyankosh.ac.in/bitstream/123456789/13421/1/Unit-17.pdf
https://www.amu.ac.in/emp/studym/99997413.pdf
https://www.academia.edu/43179686/Conditions_and_warranties_in_Sale_of_Goods_Act_193
0
https://www.amu.ac.in/emp/studym/99997413.pdf
The Sale of Goods Act 1930 (hereinafter the Act) contains various provisions regarding the sale
of goods. One such provision is of conditions and warranties. In Section 12 of the Act the
meaning of conditions and warranties are given as under-
(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may
be a condition or a warranty.
(2) A condition is a stipulation essential to the main purpose of the contract, the breach of which
gives rise to a right to treat the contract as repudiated.
(3) 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.
(4) Whether a stipulation in a contract of sale is a condition or a warranty depends in each case
on the construction of the contract. A stipulation may be a condition, though called a warranty
in the contract.
But our concern here is with 'Implied Conditions and Warranties'. If a stipulation forms the very
basis of the contract, or, as stated in S.12(2) is essential to the main purpose of the contract, it is
called a condition. On the other hand, if the stipulation is not essential to the main purpose of
the contract, it is called warranty S. 12(3).
Parties may expressly provide any conditions or warranties in their contract. For e.g. for a sale of
red saree, to be worn by a woman at a function on a particular day, it is express condition that it
should be red saree for a particular day and should reach on time. But is there any other
condition? Yes, there can be other conditions also that are not exclusively said by parties but are
impliedly understood. In the said illustration, the implied condition can be of a perfect saree, not
to be torn, matching with selected piece etc. Let's have a deep look into this provision.
Meaning–Apart from what may be provided by the parties in the contract, certain conditions
and warranties as provided under S.14 to 17 are impliedly there in every contract of sale of
goods. Thus the stipulation that are implied in a contract of sale of goods corresponding to their
nature of being a condition or warranty as according to the nature of contract is called as
Implied Conditions and Warranties. They are binding in every contract unless they are
inconsistent with any express condition and warranty agreed by the parties.
Implied Conditions:
There are seven implied conditions in a contract of sale of goods. They are –
1.Implied condition as to title – S. 14(a)– In every contract of sale, unless the circumstances
are such as to show a different intention, there is an implied condition on the part of the seller
that in case of sale, he has a right to sell the goods and in the case of agreement to sell, he will
have the right to sell goods at the time when property in them is to pass.
In Rowland v Divall[i], the claimant, a car dealer bought a car from the defendant for
£334. He painted the car and put it in his showroom and sold it to a customer for
£400. Two months later the car was impounded by the police as it had been stolen. It
was then returned to the original owner. Both the claimant and defendant were unaware
that the car had been stolen. The claimant returned the £400 to the customer and
brought a claim against the defendant under the Sale of Goods Act. It was held that the
defendant did not have the right to sell the goods as he did not obtain good title from the
thief. Ownership remained with the original owner. The defendant had 2 months use of
the car which he did not have to pay for and the claimant was not entitled to any
compensation for the work carried out on the car.
If the goods bears labels infringing the trademark of a third party, the seller has no rights
to sell them. In Niblett v Confectioners' Material [ii], the claimant purchased 1,000 tins
of condensed milk from the defendant. The tins were labelled 'Nissly'. Nestle told the
claimant that if they attempted to sell these on, they would apply for an injunction to
prevent the sale as the label was very similar to Nestle's labels for their condensed milk.
The claimants agreed not to sell them and brought an action against the sellers. It was
held that ,the sellers did not have the right to sell the goods and therefore the buyers were
entitled to repudiate the contract.
2.Implied Condition in sale by description – S. 15– When the goods are sold by
description there is an implied condition that the goods supplied shall correspond with the
description. Lord Blackburn inBowes v Shand[iv] stated: If you contract to sell peas, you
cannot oblige to take beans.
When a descriptive word or phrase is used in a contract of sale to describe the product it
creates an implied condition that the goods will correspond to the description. For
example a sale of Seedless Grapes, signifies that the fruit will have no seeds. If it turns
that the fruit is with seeds the buyer can reject the goods.
Some situations-
* Where the buyer has not seen the goods and relies on the description given by seller:
In Varley v. Whipp[vi], there was a contract for the sale of a second hand reaping
machine which the buyer had not seen. The seller described it as a new machine a year
before and having cut only 50 to 60 acres. After delivery, the buyer found that the
machine was not in accordance with the description given by seller. It was held that the
buyer was entitled to reject the machine.
* Where the buyer had seen the goods but relies not on what he had seen but on what was
stated to him by the seller: In Nicholson &Venn v Smith Marriot [vii], Table napkins
sold at an auction which were said to be authentic property of Charles I, but that turned
out to be false. Claimant was entitled to damages for breach of contract, but Hallet J held
the claimant could've avoided the contract on the ground of mistake.
3.Implied condition in sale by sample as well as description – S. 15- When the
goods are sold by sample as well as description, it is not sufficient that the bulk of goods
correspond with the sample if the goods do not correspond with the description.
In Wallis v Pratt[ix], there was a contract for sale of seeds referred to as 'Common
English Sainfoin'. However, the seeds supplied to the buyer were of a different quality.
The defect also existed in the sample. The discrepancy in quality was discovered only
after the seeds were sown. The buyer could recover damages as there was a breach of
condition.
Before heading towards the further implied conditions let us know about the Doctrine of
Caveat Emptor meaning 'Buyer beware'. This doctrine of caveat emptor is based on the
fundamental principle that once a buyer is satisfied with the product's suitability, then he
has no subsequent right to reject such product. This doctrine is enshrined through Section
16 of the Act, thus it becomes important to study it.
Sometimes the goods purchased by the buyer may not suit the particular purpose for
which the buyer wants them. The question in such case arise is, whether the buyer can
reject the goods or he is supposed to take the risk of goods turning out not suitable for the
required purpose.
The section provides that as a general rule, there is no implied warranty or condition as to
the quality or fitness for any particular purpose of goods supplied under a contract of sale.
It is incorporation of the rule contained in maxim caveat emptor which means buyer
beware. According to this rule, the buyer himself should be careful while purchasing the
goods and he should himself ascertain that the goods suit his purpose; but if the goods are
subsequently found to be unsuitable for the purpose of the buyer, he cannot blame seller
for the same.
For e.g. A purchases a horse from B. A needs the horse for riding but he doesn't mention
this to B. The horse is not suitable for riding but only for carriage. A can neither reject the
horse nor can he claim any compensation.
In Re Andrew Yule & Co. [x], the buyer ordered for hessian cloth without specifying
purpose for which he wanted the same. It was in fact needed for packing. Because of its
unusual smell, it was unsuitable for the same. It was held that the buyer had no right to
reject the cloth and claim damages.
Section 16 of the act incorporates certain exceptions to the rule of caveat emptor which
are the next two implied conditions of a contract of sale also.
In Priest v Last [xi], B went to S, a chemist and demanded a hot water bottle from him, S
gave a bottle to him telling that it was meant for hot water, but not boiling water. after
few days while using the bottle B's wife got injured as the bottle burst out, it was found
that the bottle was not fit to be used as hot water bottle. The court held that the buyer's
purpose was clear when he demanded a bottle for hot water bottle, thus the implied
condition as to fitness is not met in this case.
In Frost v Aylesbury Dairy Co [xii], The claimant bought milk from the defendant and
the account book supplied to him contained statements on the precautions taken to keep
the milk free from germs. The claimant's wife died of typhoid fever contracted from milk
supplied by the defendants. It was held that the claimant should be awarded.
Proviso to Section 16 (1)- No implied condition when the sale under patent or trade
name:
In Chanter v Hopkins , the buyer's order to the seller said: 'Send me your patent hopper
and apparatus to fit up my brewing copper with your smoke consuming furnace'. The
seller supplied the buyer the furnace and apparatus asked for but the same was not
suitable for the purpose of buyer's brewery. It was held that the seller had supplied what
was ordered and he was entitled to recover its price from the buyer.
In Shivallingappa v. Balakrishna & Son [xiv],the buyer ordered for the best quality of
'toor dal'. The dal was loaded in rain and by the time it reached the destination, it became
damages by moisture. It was held that since the damaged toor dal could not be sold as
that of best quality as it was no longer of merchantable quality. The buyer was entitled to
claim damages.
Proviso to S.16(2) – Condition negative when the goods examined by the buyer:
Thus the proviso divides defect into two kinds-
# Patent – Patent defects are those which can be found on examination by an ordinary
prudence with the exercise of due care and attention.
# Latent – In latent defects, the implied condition of merchantability continues inspite
of the examination of the goods by the buyer.
Hence, the basic concept of caveat emptor is contained in the section 16 of the Act.
Implied Warranties:
1.Implied warranty of quiet possession –
S. 14 (b)-In a contract of sale unless the circumstances of the case show different
intention, there is an implied warranty that the buyer shall have and enjoy possession of
goods.
Conclusion–As regards conditions and warranties , section 16(4) lays down that an
express warranty or condition does not negative a warranty or condition implied by this
Act unless inconsistent therewith. That means that when the parties expressly agree to
such stipulation and the same are inconsistent with the implied conditions and warranties,
the express conditions and warranties will prevail and the implied ones in S. 14 to 17 will
be negative.
ABSTRACT
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The paper focuses on the conditions and warranties with reference to Sale of Goods Act,
1930. Acondition is a stipulation essential to the main purpose of the contract and breach
of which gives rise to a right to treat the contract as repudiated. 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 a right to reject the goods and treat the contract as
repudiated. Where a stipulation in a contract ofsale is a condition or warrantydepends in
each case on the construction of the contract. Astipulation may be a condition, though
called warranty in the contract. The breach of a condition has been treated as a breach of
warranty, only damages can be claimed and the plaintiff cannot claim the right to reject
the goods and refund of the price. The paper also includes the doctrine of caveat emptor
which means it is the duty of the buyer to ensure that the goods are of the quality which
he wants. He could not hold the seller responsible for any defect in the goods. The new
concept of “caveat venditor” has come into force with the introduction of Consumer
Protection Act, 1986.
INTRODUCTION
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THE SALE OF GOODS ACT, 1930:
The whole object of sale of goods is to transfer propertyfrom one person to another.
According to Section 4(1) of the Sale of Goods Act, 1930, a contract of sale of goods is a
contract whereby the seller transfers or agrees to transfer the property in goods to the
buyer for a price2. The law of sale of goods seeks to balance the rights, duties, claims and
expectations of the sellers and buyers of goods. Sale of Goods Act is one of very old
mercantile law. Earlier this was a part of Indian Contract Act, 1872 from Section 76 to
123. At the time of selling the goods, a seller usually makes certain statements or
representations with a view to induce the intending buyer to purchase the goods. Such
representations are generally about the nature and quality of the goods and about their
fitness for the buyer’s purpose.
1 B.B.A.LL.B., II Sem., Indore Institute of Law
2 The Sale of Goods Act, 1930
These representations aim at providing satisfaction to the buyer. Some of these
representations are merely opinion which does not forma part of contract of sale, while
some of them become a part of contract of sale.A representation which forms a part of the
contract of sale and affects the contract is called a stipulation which may be either a
condition or a warranty. Though condition and warranty denote the promise made by the
seller, the Sale of Goods Act recognizes them separately as both differ in their nature.
A stipulation is a contract of sale with reference to goods which are the subject thereof
may be a condition or a warranty. Whether a stipulation in a contract of sale is a
condition or a warranty depends in each case on the construction of the contract.Unless a
different intention appears from the terms of the contract, stipulations as to time of
payment are not deemed to be of the essence of a contract of sale4. Whether any other
stipulation as to time is of the essence of the contract or not depends on the terms of the
contract.