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Chapter 15 - Conditions and Warranties

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Waleed Ahmed
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24 views

Chapter 15 - Conditions and Warranties

Uploaded by

Waleed Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Conditions and warranties

Key terms : repudiated , stipulations , condition , warranty , sec12(2) , sec 12(3) , sec 15 , sec 17

A contract of sale of goods contains various terms or stipulations regarding quality , price , mode of
payment , delivery of goods , place of delivery etc. the major terms of a contract are called conditions
and minor terms are called warranties.

Condition : sec 12(2) states “ condition is a stipulation essential to the main purpose of the contract
the breach of which gives rise to a right to treat the contract as repudiated.”

Warranty : sec 12(3) states “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 a right to reject the goods and treat the
contract as repudiated”

Express and implied conditions and warranties

1) Sale by Description : In a contract of sale of goods it is implied that the goods will match with
the description . if the goods are not according to the description the buyer can reject the goods.
Sec15
2) Sale by Sample : in a contract of sale by sample the goods must be supplied according to the
sample agreed. The contract must contain the following conditions. Sec 17
a. The goods must match the sample in quality
b. The buyer must have a reasonable opportunity to compare the goods with the sample.
c. The goods must be free from any defect.

Doctrine of caveat Emptor : The term caveat emptor means “let the buyer beware”. According to the
doctrine of caveat emptor the buyer must check the quality and suitability of goods before a prurchase
is made. If the goods are defective or do not suit his purpose the buyer cannot hold the seller liable.

Exceptions to the doctrine of caveat emptor :

1. Purchase by description : when goods are bought by description, the doctrine of caveat emptor
does not apply if goods do not match the description sec 15.
2. Purchase by sample: When goods are bought by sample the dce does not apply if goods do not
match with the sample or the buyer is not provided an opportunity to compare the goods with
the sample sec 17.
3. Purchase by sample and description : When goods are bought by sample as well as description
dce does not apply if the goods do not match the description or sample. Sec 15 .
4. Fitness for purpose: The dce does not apply when the buyer informs the seller about the
purpose for which he needs the goods and relies upon the seller’s skill and judgement. The
seller must supply goods that shall be fit for the buyers purpose.

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