Model Answer
0 min readIntroduction
The Sale of Goods Act, 1930, governs contracts involving the transfer of ownership of goods from seller to buyer for a consideration. Central to this Act are the concepts of ‘conditions’ and ‘warranties’, which are stipulations essential to the contract. These provisions aim to protect the interests of both parties involved in a sale. Understanding the distinction between these two is crucial as their breach leads to different remedies. The Act provides a framework for a fair and transparent marketplace, ensuring quality and conformity in transactions.
Conditions
Conditions are stipulations essential to the main purpose of the contract. Their breach gives the aggrieved party the right to repudiate the contract (reject the goods) *and* claim damages. Section 12(1) of the Sale of Goods Act, 1930, defines conditions. They can be express (explicitly stated) or implied (imposed by law).
- Express Condition: Specifically agreed upon by the parties. Example: “The delivery of goods must be made before 30th June.”
- Implied Condition: Inferred by law. These include:
- Condition as to Merchantable Quality (Section 14(2)): Goods must be of merchantable quality – reasonably fit for the purpose for which they are bought.
- Condition as to Fitness for a Particular Purpose (Section 14(3)): If the buyer makes known to the seller the particular purpose for which goods are required, the goods must be reasonably fit for that purpose.
- Condition as to Title (Section 14(1)): The seller has the right to sell the goods.
Warranties
Warranties are stipulations collateral to the main purpose of the contract. Their breach does *not* give the buyer the right to reject the goods, but only entitles them to claim damages. Section 12(2) defines warranties. Like conditions, they can be express or implied.
- Express Warranty: Explicitly stated. Example: “This watch is guaranteed to be waterproof for one year.”
- Implied Warranty: Inferred by law. These include:
- Warranty as to Quiet Possession (Section 14(4)): The buyer will enjoy quiet possession of the goods without disturbance.
- Warranty as to Freedom from Encumbrances (Section 14(5)): The goods are free from any charge or lien.
Distinction between Conditions and Warranties
| Feature | Condition | Warranty |
|---|---|---|
| Importance | Essential to the contract | Collateral to the contract |
| Breach | Right to repudiate & claim damages | Right to claim damages only |
| Effect | Voids the contract | Does not void the contract |
Remedies for Breach
When a condition is breached, the buyer can:
- Repudiate the contract and refuse to accept the goods.
- Accept the goods and claim damages for the breach.
Conclusion
The Sale of Goods Act, 1930, meticulously defines conditions and warranties to ensure fairness and clarity in commercial transactions. Understanding the distinction between these stipulations and the remedies available upon their breach is vital for both buyers and sellers. Modern consumer protection laws, while building upon these foundations, often provide additional safeguards, reflecting the evolving needs of the marketplace. A robust understanding of these legal principles remains crucial for navigating the complexities of commercial law.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.