File Copyright Online - File mutual Divorce in Delhi - Online Legal Advice - Lawyers in India

Conditions And Warranties Under Sale Of Goods Acts 1930

The modern era is full of sophisticated technology, trade and industries. Its is like an age of technology and industrial transformation. There is a huge difference between the technology of twentieth century and the twenty first century and now in this era people are more inclined toward electronic gadgets.

But with purchase of gadgets very few bothers about to read all the documents and read all the conditions like warranty card and all.. And suppose we get any defected product or default product we loss our claim because of insufficient or lack of documents and because of which one cant claim any kind of warranty.

As we all knows the sale or purchase of goods forms contractual relations and these contractual relations leads to certain rights and liabilities. When there is a breach of these rights and liabilities the breach of contracts arises. In contract of sale the buyer and seller also makes certain statements on the stipulation or the course of trade. This stipulation can either be a condition or warranty about the sale of goods. Some times the stipulation can be treated as the warrant and some times as conditions.

The seller of the commodity makes various claims about the goods which he is offering like quality, utility, use, suitability, durability etc.. After listening all these assurances the buyers get agree on various claims and these assurances may be act just like part of communication by seller and not a contract. but, sometime buyer believes on that forms a contracts. As the assurance which is given by buyer and accepted by buyer will forms stipulation.

Stipulation can be treated to form its nature which will be subsidiary or an expression. If the stipulation forms on the basis of the contracts then ot forms the condition and if its on collateral to the main purpose that means less important than contracts, that known as warranty. Neither the warranty or condition have uniform definition in English law. Some time they can be treated as one word.

Sale Of Good Act, 1930

As we are talking about conditions and warranties, we should know about its origin. The status which deals with the terms condition and warrants comes under the head of Sale of Goods 1930. Its very old type of contracts. The term condition get defined under the sale of goods act as ' a condition ia a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contact repudiated.'

The term warranty is define as a warranty, is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a sight to reject the goods and treat the contract as repudiated. As I mention earlier that warranty as stipulation is not essential to the main purpose of the contracts, but it is the subsidiary, so in case of breech, buyer cannot repudiate the contract but can claims the damages.

Conditions
A condition can be termed as one of the crucial term in agreement of sale which is mention by the buyer to the seller which can me implied or expressed. The buyer can cancel the proposal in case of non- compliance with the condition mentioned by the seller. Condition may be expressed or implied. If there is a breech of conditions then there is a right to aggrieved party to treat the contract as repudiated. In case if the buyer had paid, then he is also having the right to recover the price and can also claim the damages for breach.

For ex. If the buyer expressly mentions that good should be delivered before stipulated date, then that date will be taken as condition as buyer expressly mentioned it at the time of contract.

Types Of Conditions:
  • Expressed Condition

    The term defines the statement as a condition which says that something should be exist or should be there for the fulfillment of contract. These condition are generally imperative to the functioning and are done only when both the parties are agree on the said or expressed condition.
     
  • Implied Condition

    In this type of contract there are several conditions which are implied to the parties in differefent kind of contrcts of sale. The conditions exists even if they have not been there in contracts.

    The implied contracts comes under the section 14 to 17 of Sale of Goods Act, 1930 which are as follow:
    • Implied Conditions As Title:

      Here are the several conditions which are implied at the time of sale:
      1. One should have the title to sell the goods
      2. In case of selling, at the time of performing contracts one will have the right to sell the contracts.
        And if the seller has no title to sell he given good then the buyer can refuse to take those goods and then he will entitle to recover full price paid by him.
         
  • Implied Condition As To Description:

    • In section 15, the section says that there must be confirm description about the good. The buyer have the option either to accept or reject the good if the goods does not match with the description given by seller. Example- if A buys a new car from B as he believes its new and if it is not then A can reject the car.
       
    • In section 16 (2) the good should be of merchantable quality which means that the goods offered by seller should of of quality which would be accept and satisfies reasonable man. For example- If A orders a bag of wheat from B and it got damage by rain the condition of merchantability get break here by B as now its unfit to use. However the examination may not reveal the defect but it the goods will come out with defect then he have a chance to repudiate the contract even if the goods are approved.
       
    • In the light of section 17 that is a contract of sale of sample, the implies conditions will as follow:
      1. The sample product would corresponds with the actual product in all the aspects like quality, colour, size etc
      2. The reasonable opportunity should be given to buyer by seller so that he can compare the actual good with sample
      3. The goods which are free from any type of defect may be render as unmerchantable.
Lets see an example:
suppose a car company sold the car in which outer body is made up of aluminum by sample sale and later the bulk was delivered and it was found out that the bulk of car was made up of steel. the buyer was entitle to give damages and return the price.

With reference with section 15, the sale by description and sale by sample, the good which will be supplied to the buyer should be in accordance with description as well as sample. In case of Nichol v. Godis (1854) the seller sell one of the refined rape oil. The oil which is delivered was same which was sell in sample but there was one fault that it was a mixture of other oil too. So it was held that seller was liable to refund the amount and paid damages also.

Warranties

As the term warranties is an additional stipulation over the main purpose of contract. If there is a breech of warranty then the aggrieved or suffered party cannot repudiate the contract and claim the contract. In other words warranty is a stipulation which is not essential to the main purpose of contract and if it will get breach then buyer can only claim the damages.

Kind Of Warranties

  • Expressed warranty:
    In this the warranty generally both the parties are interested in contracts and warranty is accepted by both the parties expressly.

  • Implied warranty:
    In this type of warranty the parties generally assumes that the warranties have been incorporated at the time of contract of sale. The warranties which are implied are not specifically mentioned in the contracts.
There are the following implied warranties as follows:
  • Warranty as to undisturbed possession
    In section 14(2) gives the information that the buyer shall enjoy the uninterrupted possession of goods which comes under the implied warranty. As a matter of fact, if the buyer having got possession of the goods, is later disturbed at any point, he can sue the seller for the breach of warranty.

    Example – P purchases second hand car from Q and he have no idea that the car which he have purchased is stolen one. After he used the car, he was suppose to return the car. In this P is entitle to sue Q for the breach of warranty.

  • Warranty as to freedom from Encumbrances
    With reference to section 14(3), in implied warranty the goods which are in favors of third party and is not known by buyer then they shall be free from any charges and encumbrances. In case the buyer come to know about the fact at the time of entering into the contract then he loses the chance to entitle any claim.

  • Implied warranty to disclose Dangerous nature of the goods sold
    If someone sold the goods which can be inherently dangerous or likely to be dangerous and the buyer of the goods is unaware about it, then it will be consider as the breach of warranty and seller will held liable. At the first place is the duty of seller to inform the buyer about the danger in any circumstances.

    Example- X purchases a horse from Y and the horse is lunatic then it's the duty of Y to inform the X about the danger and whole scenario. While riding, the horse gt an attack because of which X fell down and got fracture. in the Y is entitle to claim damages to Y.

Difference Between Condition And Warranty:

Conditions

Warranties

In this the stipulation can be consider as the basis of contract In this the stipulations is additional to the main contracts
If the condition get breach then it leads to termination of contracts If the warranty got breach then the injured party will et the compensation only
If the buyer get agree so the condition can be treated as warranty Warranty cannot be treated as condition
The injured party can refuse to accept the goods as well as claim damage in case of breach of condition Only damages can be claimed by injured party in case of breach of warranty

When does Condition sink to the level of Warranty?

The section 13 with the breach of condition sinks to the level of breach of warranty. here we will discuss some points:
  1. When the condition is waived by the buyer, then the condition will be considers as warranty
  2. When the condition would sink to he level of warranty then the buyer himself treat the breach of condition as a breach of warranty.
  3. Wherein the contract is indivisible and the buyer has accepted the whole or part of goods, the condition is treated as a warranty. Consequently, the contract cannot be repudiated.

However, the damages can be claimed

Rule Of Caveat Emptor

Statement of caveat emptor:
with reference to section 16 of sale of goods act 1930 states that when any goods supplied then there is no implied condition or warranty as to the quality or fitness of that good which is supplied.

In a case of Court of Appeal Wallis v. Russel (1902) 2 IR 585, it is laid down that caveat emptor also implies that 'the buyer must also take care of goods.” this applies on the purchase of the things which buyer can exercise on his own skill and judgment eg. Book, picture etc(also known as specific goods ), it also applies in the cases where by usage or by a term of contract it is implied that the buyer shall not rely on the skill and judgment of the seller.

Exceptions to The Rule of Caveat emptor (Section 16 of The Sale of Goods Act, 1930)
  1. When the buyer put the concern in the mind of the seller and gives the reason to buy the goods and relies on the skills of seller and the goods comes under the course of sellers business, then it becomes the duty of the seller to deliver the reasonable and fit goods to buyer.
  2. When seller sold the goods by using sample and if the sample goods does matches with the actual goods
  3. When goods sold with the help of both description and sample and goods match with sample but not with description
  4. When seller sold the good by fraud or miss representation to buyer

Conclusion
In this article we have seen different aspects related to the conditions and warranties in respect to their necessity, significance and related provisions in law etc. In the contract of sale of goods the seller makes some representation or statements or makes certain claims about the product which he intends to sale to buyer, that representation or statement is known as stipulation. that stipulation in the contract of sale can be term as condition or warrant.

The term condition is a stipulation on which whole contract is based. it is the essential ingredient to the purpose of contract. when there is any breach of condition then it will be considered as breach contract. In this situation buyer will get the right to repudiate the contract and can claim the damages.

The term warranty is a stipulation collateral to the main purpose of the contracts. in case of breach of warranty the buyer have write to claim but he cannot repudiate whole contract. One can consider the breach of condition as breach of warranty but breach of warranty cannot be considered as breach of condition.

We also see that there are two types of condition and warranties ie implies and expressed. The expressed condition and warranties consist of the statements or warranties or conditions which are expressly agreed by both the parties at the time of contract. where as implied conditions and warranties are those which are implied by the law itself, unless otherwise agreed upon by the parties. Cavite emptor is also an important concept which tell us that “let the buyer be aware ”. it also have certain restrictions in contract of sale of goods.

The main aim of the provision of conditions and warranty provided in Sale of Goods Act is to protect the buyer from any type of fraud by the seller. At first place it is the duty of seller not to provide defective product and buyer should enquire about the quality of product before entering into contract. In order to make valid contract of purchase and selling without any harm to anyone buyer should convey the purpose of buying and seller should also give reasonable description of the product.

References
  • Conditions and warranties. In sale of goods (pp. 16-27)
  • Lord, R. A. (1980). Some thoughts about warranty law: express and implied warranties
  • Jain, s. (2015). Contracts of sale: terms, conditions and warranties with specialreference to sale of goods act harma, V. (n.d.).
  • Implied conditions and warranties under the sale of goods Act1930 with reference to the rule of caveatLegal service india
  • Pandey, A. (2018). Implied conditions and warranties under the sale of goods Act.
Websites:
  • http://egyankosh.ac.in/bitstream/123456789/13421/1/Unit-17.pdf
  • https://www.amu.ac.in/emp/studym/99997413.pdf
  • https://www.academia.edu/43179686/Conditions_and_warranties_in_Sale_of_Goods_Act_1930
  • https://www.amu.ac.in/emp/studym/99997413.pdf
  • https://blog.ipleaders.in/implied-conditions-and-warranties-under-the-sale-of-goods-act/

Law Article in India

Ask A Lawyers

You May Like

Legal Question & Answers



Lawyers in India - Search By City

Copyright Filing
Online Copyright Registration


LawArticles

Section 482 CrPc - Quashing Of FIR: Guid...

Titile

The Inherent power under Section 482 in The Code Of Criminal Procedure, 1973 (37th Chapter of th...

How To File For Mutual Divorce In Delhi

Titile

How To File For Mutual Divorce In Delhi Mutual Consent Divorce is the Simplest Way to Obtain a D...

Whether Caveat Application is legally pe...

Titile

Whether in a criminal proceeding a Caveat Application is legally permissible to be filed as pro...

The Factories Act,1948

Titile

There has been rise of large scale factory/ industry in India in the later half of nineteenth ce...

Constitution of India-Freedom of speech ...

Titile

Explain The Right To Freedom of Speech and Expression Under The Article 19 With The Help of Dec...

Copyright: An important element of Intel...

Titile

The Intellectual Property Rights (IPR) has its own economic value when it puts into any market ...

Lawyers Registration
Lawyers Membership - Get Clients Online


File caveat In Supreme Court Instantly