Question
Download Solution PDFWhich one of the following relates to warranty?
1. It is of vital importance for completion of contract
2. If there is breach, the aggrieved party can repudiate the contract
3. It is essential to the main purpose of the contract
4. In case of breach, the aggrieved party can claim only damages
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFWarranty:
- According to Section 12(3) of the Sale of Goods Act, 1930, 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 right to reject the goods and treat the contract as repudiated.
- In other words, warranty is a stipulation which is not essential to the main purpose of the contract i.e., it is of a subsidiary or collateral nature.
- If there is a breach of warranty, the buyer cannot repudiate the contract, but he can only claim damages from the seller.
- In the case discussed above if the buyer had asked for a good car and while selling the car the dealer said that it could run for 15 km per litre of petrol. But it was discovered that it could run only 12 km per litre of petrol. Here, the statement made by the seller would amount to a warranty and the buyer could not terminate the contract and he was entitled to claim damages only.
Last updated on Jun 12, 2025
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