The question asks to identify the correct statement regarding conditions and warranties in a contract of sale.
Analyzing Contract Law Statements
We need to evaluate each statement based on legal principles governing contracts of sale:
- Statement 1: Defines a condition as an essential stipulation. This definition is generally correct. Conditions are fundamental terms going to the root of the contract.
- Statement 2: Defines a warranty as a collateral stipulation. This definition is also generally correct. Warranties are subsidiary terms, breach of which does not defeat the main purpose of the contract.
- Statement 3: States waiving a warranty makes it a condition. This is incorrect. Typically, waiving a condition might result in treating it as a warranty, not the other way around.
- Statement 4: Describes the consequence of breaching a condition when goods are accepted in a non-severable contract. It correctly states that such a breach is treated as a breach of warranty, limiting the buyer's remedy to damages rather than rejection, unless otherwise agreed. This is a key provision in sales law (e.g., Section 13 of the Sale of Goods Act).
Correct Statement Identification
Statement 4 accurately reflects the legal position regarding the breach of a condition after acceptance of goods in a non-severable contract. The law treats the breach as a breach of warranty in such cases, preventing repudiation of the contract unless the contract specifies otherwise.
Therefore, the correct statement is:
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.
Important Questions from Sale of Goods Act, 1930 - Teaching
- Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property (ownership) in goods passes to the buyer when
- Read Assertion (A) and Reason (R) and answer using code given below :
Assertion (A) : “Goods” means every kind of movable property including actionable claims and money and excludes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
Reason (R) : Above principle is laid down in Section 2 (7) of the Sale of Goods Act.
Code : - Which of the following statement is correct ?
- Match List – I with List – II and select the correct answer using codes given below :
List – I List – II (a) Goods in sale of goods (i) Bhopal Sugar Industries Ltd. V. STO (b) Consideration for a sale of goods (ii) Instalment Supply Ltd. V. STO (c) Sale and agreement to sale (iii) R.D. Goyal V. Reliance Industries Ltd. (d) Difference between contract of sale and contract of agency (iv) Aldridge V. Johnson
