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Commercial Law                                                Sukhpreet  Kaur, Lovely Professional University




                    Notes                         Unit 15: Conditions and Warranties



                                     CONTENTS

                                     Objectives
                                     Introduction
                                     15.1  Conditions and Warranties
                                     15.2  Express and Implied Conditions and Warranties

                                     15.3 Caveat Emptor
                                     15.4 Summary
                                     15.5 Keywords
                                     15.6 Self Assessment
                                     15.7 Review Questions
                                     15.8 Further Readings


                                   Objectives

                                   After studying this unit, you will be able to:
                                       Discuss conditions and warranties
                                       Explain express and implied conditions and warranties

                                   Introduction

                                   As you all know that  before a contract of sale is entered into, a seller frequently makes
                                   representations or statements with reference to the goods which influence the buyer to clinch

                                   the bargain. Such representations or statements differ in character and importance. Whether any
                                   statement or representation made by the seller with reference to the goods is a stipulation forming
                                   part of the contract or is a mere representation (such as expression of an opinion) forming no part
                                   of the contract, depends on the construction of the contract. If there are no such representations,
                                   the ordinary rule of law - caveat emptor’, i.e., “let the buyer beware” --applies. This means the
                                   buyer gets the goods as they come and it is no part of the seller’s duty to point out the defects in
                                   the goods to the buyer.

                                   15.1 Conditions and Warranties

                                   A stipulation in a contract of sale with reference to goods which are the subject thereof may be a
                                   condition or a warranty [Sec. 12 (1)].
                                   Condition [Sec. 12 (2)].  A  condition  is a stipulation which is  essential to the main purpose
                                   of the contract. It goes to the root of the contract. Its non-fulfilment up sets the very basis of the


                                   contract. It is defined by Fletcher Moulton L.J. in Wallis v. Pratt, (1910) 2 K.B. 1012 as an “obligation
                                   which goes so directly to the substance of the contract or, in other words, is so essential to its very
                                   nature, that its non-performance may fairly be considered by the other party as a substantial
                                   failure to perform the contract at all.” If there is a breach of a condition, the aggrieved party can
                                   treat the contract as repudiated.






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