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BUSINESS LAW

PRESENTATION
ON
CONDITION AND
WARRANTIES

PRESENTED BY : PUJA RANI DAS


RACHNA SA
RAJEEB KUMAR TANTY
RAJESH KUMAR YADAV
RANJEET KUMAR
RAM RANTAN SOREN

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- 1506260027
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- 1506260031
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CONDITION

A condition is a stipulated essential to the


main purpose of the contract, the breach of
which gives rise
to a right to treat the
contract as repudiated.

ESSENTIALS OF A
CONDITION
It is essential to the main purpose of the
contract.

The non fulfillment of condition causes


irreparable damage to the aggrieved party
which would defeat the very purpose for
which the contract is made.
The breach of a condition gives a right to
the aggrieved party to rescind the contract
and recover the damages for breach of
condition.

EXAMPLE:
P goes to R, A horse dealer says I want a
horse which can run at a speed of
30km/hour. The horse dealer point out a
particular horse and says, this will suit you.
P buys the horse , later on P finds that the
horse can run only at a speed 20km/hour.
There is breach of condition, P can
repudiate the contract, return the horse to R
and get back the price.

WARRANTIES
A warranty is a stipulation collateral to the
main purpose of the contract, the breach of
which gives rise to claim for damages but
not a right to reject the goods and treat the
contract as repudiated.

ESSENTIAL OF A
WARRANTY
It is collateral to the main purpose of the
contract.
The breach of warranty causes damages to
the aggrieved party and does not defeat the
main purpose of the contract.
The aggrieved party can only claim the
damages for breach of warranty but can
repudiate the contract.

EXAMPLE:
X asked a car dealer to suggest him a good
car and while suggesting the car, the dealer
said that it could run for 20km per litre of
petrol. But the car could run only 15km per
litre of petrol. In this case the statement
made by the seller was a warranty. X was,
therfore not entitled to reject the carbut he
was entitle to claim the damages.

DIFFERNCE BETWEEN CONDITION


AND WARRANTY
1.

2.

Importance in contract : Condition is a


stipulation whish is essential to the main
purpose of the contract , where as warranty is
stipulated which is collateral to the main
purpose of the contract.
Consequences of breach : The breach of
condition gives right to the aggrieved party to
repudiate the contract and claim damages,
where the breach of warranty gives the
aggrieved party a right to claim damages only
i.e. aggrieved party cannot repudiate the
contract

WHEN CONDITION TO BE TREATED AS WARRANTY

Voluntary waiver by buyer :Where a contract of sale is


subject to any condition to be fulfilled by the seller, the
buyer may waive the condition or elect to treat the breach
of the condition as a breach of warranty and not as a
ground for treating the contract as repudiated.
Treating the condition as warranty : The buyer may elect to
treat a breach of a condition as a breach of a warranty.
Acceptance of goods by buyer : Where the contract of sale
is not servable and the buyer has accepted the good or
part thereof, the breach of any condition can only be
treated as a breach of warranty.

TYPES OF CONDITION AND


WARRANTY

EXPRESS CONDITION AND WARRANTY:


In a contract of sale condition and warranties may
either be express or implied. The conditions and
warranties which are agreed upon between parties
in express words, either spoken or written.

IMPLIED CONDITION AND WARRANTY:


Where the condition and warranty are applicable in
a contract of sale by operation of law, they are said
to be implied condition and warranty. These are the
condition and warranties which do not form a part of
contract between the parties, but they automatically
come into existence by operation in law

IMPLIED CONDITION

Condition as to title
sale by description
sale by sample as well by description
Sale of sample

IMPLIED WARRANTIES
implied warranty of quiet possession
implied warranty of freedom from
encumberances
implied warranty annexed by usage of
trade

THANK
YOU