1. LAW OF SALE OF GOODS
CONDITION AND WARRANTY
BY- AYUSH PATEL

2. CONDITIONS AND WARRANTIES
 In a contract of sale, usually parties
makes certain statements or the
stipulation about the goods under sale
or purchase. These stipulations in a
contract of sale made with reference to
the subject matter of sale. It may be
either a condition or warranty.

3. Conditions
 A condition is a stipulation essential to
the main purpose of the contract, the
breach of which gives right to repudiate
the contract and claim damage [Section
12(2)].

4. Example
X want to purchase a horse from Y, which
can run at the speed of 50 Kms/hours. Y
pointing at particular horse says “this
horse will suit for you.” X buys the horse
but later on find that the horse can run at
speed of 30 kms/hour. This is a breach of
condition because the stipulation made by
the seller forms the very basis of the
contract.

5. Warranties
 Warranty is a stipulation collateral to
the main purpose of the contract, the
breach of which gives rise to a claim for
damage but not a right to reject the
goods and treat the contract as
repudiated[Section 12(3)]

6. Example
 A man buys a particular horse, which is
warranted to be fast to ride and drive.
The horse turns out to be vicious, the
buyer’s only remedy is to claim
damages. This is a breach of
warranty, because the stipulation made
by the seller was only a collateral one

7. When condition to be treated as
warranty
1. Voluntary waiver of condition- Although on a breach of
condition by the seller , the buyer has a right to treat the
contract as repudiated and reject the goods, but he is not
bound to do so. He may instead elect to waive the condition
that is to treat the breach of condition as breach of warranty
and accept the goods and sue the seller for damages for
breach of warranty.
2. Acceptance of goods by buyer- Where the buyer has
accepted the goods and subsequently he comes to know of
the breach of condition, he cannot reject them, but can only
maintain an action for damages. This case does not depend
upon the will of the buyer but the law compulsorily treats a
breach of condition as a breach of warranty.

8. DIFFERENCE BETWEEN CONDITION AND
WARRANTY
1.As to value. [Sec.12(2)(3)]
A condition is a stipulation which is essential to the main purpose
of the contract, whereas a warranty is a stipulation which is
collateral to the main purpose of the contract.
2.As to breach.
The breach of a condition gives the aggrieved party the right to
repudiate the contract and also to claim damages , whereas
breach of warranty gives the aggrieved party a right to claim
damages only.
3.As to treatment.
A breach of condition may be treated as a breach of warranty but a
breach of warranty cannot be treated as a breach of condition.

9. Types of conditions and warranties
 Express – which are expressly provided in the contract.
 They are said to be express when at the will of the parties
they are inserted in the contract

10. Implied conditions
The implied conditions and warranties ,are those which
are presumed by law to be present in the contract though
they have not been put into it in expressed words.
1. Condition as to title[sec.14(a) -seller has right to sell.
2. Sale by description (sec.15)- goods shall correspond with the
description.
3. Condition as to quality or fitness [sec16(1)]
4. Condition as to merchantability [sec.16(2)]
5. Condition implied by custom[sec.16(3)]- fitness for a particular
purpose may be annexed by the usage of trade
6. Sale by sample (sec.17)
7. Condition as to wholesomeness