CONDITION AND WARRANTY

Q1. Write a note on warranty and condition?? Or Define condition and warranty?

CONDITION:

Sales of Goods Act Section 12 (2) define in the following words:

“A condition 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”.
EXAMPLE:

Ahmed agrees to sell, 5 Honda 70cc Motor cycles to Ali. But Ahmed delivers 5 Honda 125cc. It is
case of breach of condition. Ali has a right reject the delivery of Motor Cycles and claim damages because
the cost of Honda 125cc is much more than Honda 70cc. He has a right to accept this wrong delivery if, he
feels that the contract is fit for his requirements.

WARRANTY:

Sale of Goods Act Section 12(3) defines the warranty in the following words:

“A warranty is a stipulation collateral to the main purpose of the contract, the breach if
which gives the aggrieved party a right to sue for damages only, and not avoid the contract
itself”.
EXAMPLE:

Ahmed sell his machinery to Ali at cost of Rs. 50,000/- and gives the warranty that estimated life of
his machinery is 10 years. If machinery is unsuitable for work after 4 years. It is known as breach of
warranty. Ali can claim damages from Ahmed.

ANSWER!!!
Q2. What is meant by implied condition and warranties in a contract of sale of goods?

ANSWER:

IMPLIED CONDITIONS AND WARRANTIES:

According to these sections 14 to 17, the following implied conditions and warranties are:
IMPLIED CONDITIONS:
Implied conditions are condition, which are not expressed by the parties but are incorporated by law
and they are follows:
 Right to sell,
 Purpose of goods,
 Sale by description,
 Sale by sample,
 Implied condition as to quality,
 Usage of trade.

RIGHT TO SELL:
In every contract of sale, there is an implied condition on the part of the seller then in case of a sale, he
has right to sell the goods and that in the case of an agreement to sell, and he will have a right to sell the
goods at the time when the property is to pass. [Section 14(a)].
EXAMPLE:
Adam purchased a car from Johar. After 6th months Faiz, the true owner of car, demanded it from
Adam. Adam had to return it to its true owner. Adam was entitled to recover the full price even though
several months had passed.

SALE BY DESCRIPTION:
Where there is a contract for the sale of goods by description. There is an implied condition that the
goods shall correspond with description. [Section 15].
EXAMPLE:
Amir bought a reaping machine from Ameer who described it to be one year old and used only to cut
50 to 60 acres. But, Amir found that the machine extremely old. Amir was entitled to reject the machine
because machine did not correspond with the description given by the seller.

SALE BY SAMPLE:
In the case of sale by sample, there are implied condition under Section 17 that;
(a) Should correspond with the sample in quality.
(b) Buyer shall have reasonable opportunity of comparing with the sample.
(c) The goods shall be free from any defect rendering the merchantable, which would not be appearing
on reasonable examination of the sample.
EXAMPLE:
Ali bought from saad certain quantity of worsted coating equal to sample. The coating was equal to
sample but due to a latent defect, the cloth was found to be unfit for making coats. The buyer was entitled to
rejects the goods because the defect contained in the sample was not apparent on reasonable examination of
the sample.
PURPOSE OF GOODS:
When the buyer expressly or by implication tells the purpose of purchase of goods to the seller and
relies on the seller’s skill and judgment, then it is an implied condition that the goods shall be reasonably fit
for such purpose.
EXAMPLE:
Ali purchased a hot water bottle from Ahmed, retail chemist. Ali asked Ahmed if it would stand
boiling water. The chemist told him that the bottle was meant to hold hot water. The bottle burst when water
was poured into it and injured his wife. The chemist is liable to refund the price and pay damages because
bottle was unfit for the purpose for which if was purchased.

IMPLIED CONDITION AS TO QUALITY:

Where goods are bought by description from a seller who deals in goods of that description whether
he is manufacturer or producer or not, there is an implied condition that the goods shall be of merchantable
quality [Section 16(2)].
EXAMPLE:
Adam bought from a dealer a bottle coke. While opening its cork in the normal manner, the bottle
broke off and injured Adam’s hands. Smith was entitled to claim damages because the bottle was not of
merchantable quality.
USAGE OF TRADE:
An implies warranty or condition as to quality for a particular purpose may be join by the usage of
trade [Section16 (3)].

IMPLIED WARRANTIES
The following are implied warranties under the contract of sale:
 Possession of goods,
 Free from charges,
 Usage of trade.

POSSESSION OF GOODS:
There is an implied warranty that the buyer shall has and enjoy quite possession of the goods [Section
14(b)].
EXAMPLE:
Ali told a second hand radio to Ahad who spent Rs.100 on the repairs of this radio. The police seized
this radio, as it was a stolen one. Ahad filed a suit against Ali for the recovery of damages for breach of
warranty of quite possession including the cost of repairs. It was held that Ahad was entitled to recover the
same.

FREE FROM CHARGES:

There is an implied warranty that the buyer shall be free from any charge in favor of any party not
declared or knows to the buyer before or at the time when the contract is made. [Section 14©]

USAGE OF TRADE:
There is an implied warranty or condition as to quality for a party’s purpose may be annexed by the
usage of trade.
EXAMPLE:
Asad purchased a tin of disinfectant powder, which required to be opened with special care. Asad’s wife
while opening the tin was injured as the powder flew into her eyes. Held, the seller was liable for the injury
sustained by Asad’s wife because of breach of warranty.
ANSWER!!