A condition is a stipulation essential to the main

purpose of the contract, the breach of which gives

rise 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 to a right to reject the
goods and treat the contract as repudiated.

Repudiation of contract: The buyer can

repudiate the contract.
Waive the condition: The buyer has an option
to waive the condition. Once he waives the
condition, he cannot afterwards insist on its
performance.
Reject the goods: The buyer can reject the
goods.

Option to treat condition as warranty and claim

damages: Buyer has the option to treat the
breach of condition as a breach of warranty. In
such a case, he is entitled to claim damages for
loss caused due to breach of condition.
Compulsion to treat the condition as warranty
and to claim damages: In such a cases a buyer is
compelled to treat the conditions as a breach of
warranty, the buyer may sue the seller for
damages for the same.
No remedy when the seller is excused by law:
Where the fulfillment of a condition is excused by
law by reason of impossibility or otherwise, the
buyer shall have no remedy against the seller for
the breach of the condition.

Claim for damages: The buyer cannot

repudiate the contract. He cannot even reject
the goods. He can claim damages for the
breach of warranty.
Right of diminution or extinction of price:
The buyer may diminish or extinct the price
of goods by the amount of damages.

Refuse to pay price: The buyer may refuse to

pay price altogether if the loss is more than
the price.
Sue for excess loss: The buyer may also sue
for the amount of damages which exceeds
the price of the goods.

Voluntary waiver:
Waiver may be express or implied.
A buyer has a right to waive or give up any
condition of contract of sale.
If he waives any condition, he agrees to
accept defective goods.
It should be noted that a party may always
waive a condition which is for own benefit.

Voluntary election:
A buyer has an option to elect the breach of
a condition as breach of warranty.
If a buyer elects this option, he can claim
only damages and loses his right to treat the
contract as repudiated.

Compulsory treatment:
Where the contract is not severable and the
buyer has accepted whole or any part of the
goods, the breach of any condition of such
contract can only be treated as breach of
warranty.
The buyer has no option to repudiate the
contract but can claim damages unless
there is a term of the contract to that effect.
The term may be express or implied.

In contract of sale, conditions and warranties

may be of two types:
Express conditions and warranties: These
are those conditions and warranties which
are expressly agreed upon by the parties in
the contract of sale.
Implied condition and warranties: These are
those warranties which are implied by the
law or imposed by the law on the seller.

Following are the implied conditions

incorporated in the sales of goods act:
Condition as to title:
In a contract of sale, there is an implied
condition on the part of the seller that
1)In case of sale, he has a right to sell the
goods and
2)In case of agreement to sell, he will have a
right to sell the goods at the time when the
property is to pass.

Condition as to description:
Where there is a contract for sale of goods
by description, there is an implied condition
that the goods shall correspond with the
description.
The description may include physical
characteristics like class or grade, trade
marks, brand name label, etc..
If the goods are not according to the
description then the buyer has full right to
reject the goods tendered.

Condition as to sample:
When the sale is made by showing a sample,
the implied condition is that the goods
supplied shall be of the kind and quality as
the sample is.

Condition as to sample as well as description:

Where the goods are sold by sample as well
as description, the implied authority is that
the goods must correspond with both.
If not, the buyer con reject the goods.

Condition as to quality or fitness:

General rule is that there is no implied
condition as to quality or fitness for any
particular purpose of goods supplied.
The buyer himself must ensure that the
goods suits his purpose before he buys.
If the goods are subsequently found
unsuitable for his purpose he cannot blame
the seller and return them.

Condition as to merchantable quality:

Where goods are bought by description from
the seller who deals in goods of that
description, there is an implied condition that
the goods shall be of the merchantable
quality.
Merchantable goods are also free from latent
defects.

Condition implied by custom:

An implied condition as to quality or fitness
for a particular purpose may be annexed by
the usage of trade.

Warranty as quiet possession of goods:

In every contract of sale, unless there are
intentions to the contrary, there is an implied
warranty that the buyer shall have and enjoy
quiet possession of the goods.
This warranty assures the buyer that no
person will interfere or disturb in his quiet
enjoyment and possession of the goods.

Warranty as to freedom from charge or

encumbrance:
In a contract of sale, there is also an implied
warranty that the goods shall be free from
any charge or encumbrance in favour of third
party.

Warranty as to quality or fitness by usage of

trade:
In every contract of sale, an implied warranty
as to quality or fitness of goods for a
particular purpose may be annexed by the
usage of trade.

Warranty to disclose dangerous nature of

goods:
Any person who sells goods which he knows

Warranty to disclose dangerous nature of

goods:
Any person who sells goods which he knows
to be dangerous, he must warn the buyer of
the probable danger.
If he sells without giving fair warning to the
buyer, he is liable for the consequences.

The Latin expression caveat emptor enunciates

the doctrine of caveat emptor of English common
law.
Caveat emptor means buyer beware or buyer take
care but does not mean that the buyer must take
chance.
The doctrine of caveat emptor is based on the
presumption that a buyer relies on and uses his
skill and judgment while buying the goods.
If the buyer distrusts his own skill or judgment, he
may ask the seller to give a guarantee or warranty.

o
o

Following are the exceptions of doctrine of caveat

emptor:
When purpose of buying is made known to the
seller: In such a case seller is under a duty of the
buyer subject to the following three conditions:
The buyer makes known to the seller the particular
purpose for which the goods are required.
The buyer relies on the sellers skill or judgment.
The goods are of the description dealt in by the
seller, whether he is the manufacturer or producer.

When the goods are bought by description

i.e. merchantable goods: In such case the
seller is bound to supply the goods

It is a stipulation which
is essential for the
main purpose of the
contract.
In case of breach of a
condition, the
aggrieved party can
repudiate the contract
of sale.

Condition

It is a stipulation which
is collateral to the main
purpose of the
contract.
In case of breach of
warranty, the
aggrieved party can
claim damages only.

Warranty

A breach of condition
may be treated as
breach of warranty.

Condition

The breach of
warranty cannot be
treated as a breach of
a condition.

Warranty