Sec 12 -Condition and

Warranty
1. A stipulation in a contract of sale
with reference to good which are the
subject thereof may be a condition or
warranty.
2. A 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.
3. 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.
4. Whether a stipulation in a contract
of sale is a condition or a warranty

depends in each case on the

construction of the contract. A
stipulation may be a condition, though
called a warranty in the contract.
Sec. 12(2), is essential to
the main purpose of the
contract, it is called a
condition. On the other hand
if the stipulation is not
essential to the main purpose
of the contract but is only of
secondary importance, or as
Sec.
12(3)
puts
it,
is
collateral to the main
purpose of the contract, it
is called a warranty.

For example, a lady orders

for a red saree, it being
agreed between her and the
seller that it will be sent by a
registered parcel, and that
she will pay the price by 15th
January, the day of her
marriage.
In
this
illustration,the
stipulations
regarding the colour of the
saree as well as the date of
supply are essential to the
main purpose of the contract
and are conditions whereas
stipulations
regarding
the
time of payment of the price
and the mode of dispatch of

the goods are not essential to

the main purpose of
the
contract
but
are
only
collateral, they are warranties.
Baldry v. Marshull, the
plaintiff
consulted
the
defendants a car dealer, for
purchasing a car suitable for
touring
purposes.
The
defendants advised him to
buy a Bugatti car. The
plaintiff accordingly purchased
a Bugatti car but it proved
to be unsuitable for touring
purposes.
The
plaintiff
therefore, sought to reject the

car and to claim the refund of

the price. According to the
contract all guarantees and
warranties
were
excluded
except the guarantee against
the mechanical defects for a
period of one year only. On
the basis of this provision, the
defendants contended that
the plaintiff could not reject
the car and claim the refund
of
the
price.
But
this
contention
rejected by the court. The
court held that fitness of car
for touring purposes was a
condition and therefore the

breach of it gave the plaintiff

the right to reject the car and
get refund of the price.

BETWEEN
WARRANTY

DISTINCTION
CONDITION
AND

WA

ONDITION

RRANTY

Definition:
Condition is defined
in Sec .12(2). A
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.

Definition: Warranty
is defined in Sec .
12(3). A warranty is
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.

Condition

is Warranty

is

essential
to incidential
the
main collateral to
purpose.
purpose.
Remedy:
Breach
of
condition gives
rise to
repudiate the
contract.

or
main

Remedy: Breach of
warranty gives rise to
a claim for damages.
Due to the breach of
warranty a contract
cannot be repudiated.

Breach of a Breach of a warranty

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

Condition
is
one something
agreed
upon
as a requisite
to the doing or
taking effect of
something
else; a thing
on
whose
fulfillment
another thing
or act is made
to depend; a
stipulation or
provision;
mode or stage
of being, state

Warranty
is
a
guarantee or security
that goods are of the
quality stated. It is a
promise or covenant
by deed by the
bargainer, for himself
and his heirs, to
warrant or secure the
bargainee and his
heirs, against all men
for the enjoying of the
thing granted.

in
which
thing exists.

When condition to be treated as

warranty
(1) Where a contract of sale is subject
to any condition to be fulfilled by the
seller, the buyer may waive the condition
or elect to treat the breach of the
condition as a breach of warranty and not
as a ground for treating the contract as
repudiated.
(2) Where a contract of sale is not
severable and the buyer has accepted the
goods or part thereof, the breach of any
condition to be fulfilled by the seller can

only be treated as a breach of warranty

and not as a ground for rejecting the
goods and treating the contract as
repudiated, unless there is a term of the
contract, express or implied, to that
effect.
(3) Nothing in this section shall affect
the case of any condition or warranty
when condition to be treated as warranty
fulfillment of which is excused by law by
reason of impossibility or otherwise.