Contract of sale of goods act conditions and warranty

BY SHREYA PGFB1144

INTRODUCTION
Sales of Goods Act came into force on 1st July 1930 It contains 66 sections and extend to whole of India except the state of Jammu and Kashmir. Section4(1) defines a contract of sales of goods asA contract whereby the seller transfers or agrees to transfers the property in goods to the buyer for a price

Characteristics of Sales of Goods Act

The following are the essential characteristics of a contract of sales of goods Two parties Goods Price Transfer of property Includes both a sales and agreement to sales Absolute and Conditional

CONDITION
It is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party a right to repudiate the contract itself. In addition, he may maintain an action for damages for loss suffered, if any, on the footing that the whole contract is broken and the seller is guilty of non-delivery EXAMPLE- P, goes to R, a horse dealer, and says, I want a horse which can run at a speed of 30 km. per hour. The horse dealer points out a particular horse and says, this will suit you. P buys the horse. Later on P finds that the horse can run only at a speed of 20km./hr. there is a breach of condition, P can repudiate the contract, return the horse to Rand get back the price

WARRANTY
A warranty is a stipulation collateral to the purpose of the contract, the breach of which gives the aggrieved party a right to sue for damages only, and not to avoid the contract EXAMPLE- Assume that a farmer, intending to plant notill soybeans, approaches a seller to buy herbicide. Assume further that the buyer requests a particular herbicide mix but the seller suggests a less expensive mix. If the chemicals fail to kill crabgrass and the farmer has a low yield of soybeans, the farmer could sue the seller for breach of the warranty of fitness for a particular purpose because the seller knew what the farmer required.

Condition And Warranty Distinguished [sec.12(2)(3)]

Condition It is essential to the main purpose of the contract. The aggrieved party have a right to repudiate the contract and claim for damages. This can be treated as a breach of warranty. Warranty It is collateral to the main purpose of the contract. The aggrieved party have a right to claim for damages only. This can not be treated as a breach of condition.

When breach of condition treated as breach of warranty [sec.13]

Voluntary waiver by buyer. Acceptance of goods by buyer.

IMPLIED CONDITIONS
1) Condition as to title 2)Condition in a sale by description 3)Condition in a sale by sample 4)Condition in a sale by sample as well as by description 5)Condition as to fitness or quality 6)Condition as to merchantability 7)Condition as to wholesomeness

IMPLIED WARRANTY
1)Warranty of quiet possession 2)Warranty of freedom from encumbrances 3)Warranty of disclosing the dangerous nature of goods to the ignorant buyer

DOCTRINE OF CAVEAT EMPTOR

Caveat emptor means let the buyer be aware According to the doctrine of caveat emptor it is the duty of buyer to be careful while purchasing goods of his requirement and the seller is not bound to disclose every defect in goods of which he may be cognisant. While making purchase the buyer depends on his own skills and makes a bad choice and hence he can t hold the seller liable for the same, as there is no implied undertaking by the seller.

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