Page 147 - DCOM103_COMMERCIAL_LAW
P. 147
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.
140 LOVELY PROFESSIONAL UNIVERSITY