warranty
Under s.12 of the Sale of Goods Act, 1930, a stipulation in a contract of sale is either a condition or a warranty. A condition is essential to the main purpose of the contract, and its breach entitles the buyer to treat the contract as repudiated. A warranty is collateral to the main purpose, and its breach gives only a claim for damages (s.12(3)). Whether a stipulation is a condition or a warranty depends on the construction of the contract, not on the label used.
The buyer may elect, or be compelled, to treat a breach of condition as a breach of warranty (s.13), for example after accepting the goods. Implied warranties include quiet possession and freedom from encumbrances (s.14). The remedy for breach of warranty is in s.59. A manufacturer's “warranty” card is in practice a guarantee to repair, governed also by consumer law.
Example
The car was delivered with a faulty radio; that was a breach of warranty, so the buyer could claim damages but not return the car.
In Indian law
- Sections 12, 13, 14 and 59, Sale of Goods Act, 1930
See also
sale of goods · caveat emptor · breach of contract · guarantee
Read more in the study notes
- The business letter: parts, layout and characteristics (Business Communications)
- Enquiries, quotations, orders, complaints and responses (Business Communications)
- Memorandum of association and the doctrine of ultra vires (Company Law)
- Breach of contract: anticipatory and actual (Contract I)
- Principal and third parties; personal liability of the agent (Contract II)
- Contract of sale, conditions and warranties (Contract II)