Section 12(2) states that a condition is a stipulation which is essential to the main purpose of the contract. The breach of a condition gives rise to a right to treat the contract as repudiated or broken.
Example – A buys from B a hair oil advertised as pure coconut oil. The oil turns out to be mixed with herbs. A can return the oil and claim the refund of price.
Section 12(3) states that a warranty is a stipulation which is collateral to the main purpose of the contract. The breach of a warranty gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated.
Example – A while selling his car to B, stated the car gives a mileage of 12 kms per litre of petrol. The car gives only 10 kms per litre. B cannot reject the car. It is breach of warranty. He can only claim
damages for the loss due to extra consumption of petrol.
|
Condition |
Warranty |
|
| Definition | A stipulation which is essential to the
main purpose of the contract. |
A stipulation which is collateral to the main
purpose of the contract. |
| Remedy | The aggrieved party can terminate the contract, claim damages or treat it as
breach of warranty |
The aggrieved party cannot terminate the contract but can only claim damages |
| Treatment | A breach of condition can be treated as a
breach of warranty |
A breach of warranty cannot be treated as
breach of condition. |
truly its vry hlpful…