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Condition Warranty
1. A condition is a stipulation (in 1. A warranty is a stipulation,
a contract), which is essential which is only collateral or
to the main purpose of the subsidiary to the main
contract. purpose of the contract.
2. A breach of condition gives 2. A breach of warranty gives
the aggrieved party a right to only the right to sue for
sue for damages as well as damages. The contract
the right to repudiate the cannot be repudiated.
contract.
3. A breach of condition may be 3. A breach of warranty cannot
treated as a breach of be treated as a breach of
warranty in certain condition.
circumstances.
CASES OF TREATING THE BREACH OF
CONDITION AS BREACH OF
WARRANTY
[SECTION 13]
1. Voluntary Waiver .
Repudiation of contract
Right of resale before due date
It has been defined as a voluntary transfer of
possession from one person to another..
Delivery of the goods may, be:
I. Physical or Actual Delivery
2. Symbolic Delivery - e.g., delivery of a
railway receipt properly endorsed, or delivery
of the key of a warehouse;
3. Constructive Delivery or Attornment -
only an acknowledgement by the person in
possession that he holds them on behalf of
another.
1. The seller is not bound to deliver goods till the
buyer applies for delivery in terms of the
contract.
2. Place of Delivery - goods sold are to be
delivered at the place agreed for delivery in the
contract.
3. Time of Delivery – as per contract otherwise
within reasonable time.
4. The expenses of and incidental to putting the
goods into a deliverable state shall be borne by
the seller, as per the terms of the contact.
5 Demand and tender must be at a reasonable hour -
What is a reasonable hour is a question of fact.
6 Delivery of Wrong Quantity -.
7 Instalment Deliveries - The buyer is not bound to
accept delivery by instalment, unless otherwise
agreed.
8 Delivery to the Carrier or Wharfinger –
9 Buyer not bound to return rejected goods -.
10 Liability of the Buyer -
In the case of sale by auction the following rules
apply:
1. At an auction, the sale is complete when the
auctioneer announces its completion by the
fall of the hammer
2. A bidder is at liberty to withdraw his bid at any
time before it is accepted by auctioneer
3. Advertisement to auction is not an offer but
mere invitation .
4. Auctioneer has right to make any condition he
likes .
5. Biddings can be withdrawn before acceptance
6 In case of goods put up for sale in lots –
7 no seller or any person who has advertised
can bid at an auction sale – unless right is
notified
8 Knockout agreements are unlawful
9 Pretended bidding by seller to raise price is
voidable at option of buyer
The Sale of goods is the most common of all
commercial transaction . Knowledge of sale
of goods is important to all . Law relating to
sale of goods is contained in sale of goods
act 1930.
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