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CONDITIONS &WARRANTIES
EP JOHNSec BI MBA
DMS, SOMPONDICHERRY
UNIVERSITY
INTROBUY GOODS- SATISFY NEEDS- PRODUCE OTHER GOODS
AGREE TO TERMS- SELLER & BUYER
TERMS OF SELLER – CONDITIONS
TERMS OF BUYER – WARRANTY
SALE OF GOODS ACT 1930SALE OF GOODS
FETCHES REVENUECONDITIONS & WARRANTIES
DELIVERY OF GOODSPASSING OF PROPERTY
EXCEPT J & K
ESSENTIALS OF ACT
ATLEAST TWO PARTIESCONTRACT OF SALE
TRANSFER OF PROPERTYPRICE CONSIDERATION
ESSENTIALS OF VALID CONTRACT
CONDITIONACCORDING TO SEC 12 (2) OF SALE OF
GOODS ACTA CONDITION IS A STIPULATION
ESSENTIAL TO THE MAIN PURPOSE OF CONTRACT, THE BREACH OF WHICH
GIVES RISE TO A RIGHT TO TREAT THE CONTRACT AS REPUDIATED
WARRANTYACCORDING TO SEC 12 (3) OF SALE OF
GOODS ACTA WARRANTY IS A STIPULATION,
COLLATERAL TO THE MAIN PURPOSE OF A 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
CONDITION Vs WARRANTYPARTICULAR CONDITION WARRANTY
NATURE OF STIPULATION
FUNDAMENTAL, ESSENTIAL FOR MAIN PURPOSE OF CONTRACT
SUPPORTIVE, COLLATERAL FOR THE CONTRACT
CONSEQUENCES OF BREACH
THE CONTRACT MAY BE AVOIDED
MAY GIVE RISE TO A RIGHT TO CLAIM FOR COMPENSATION
TREATMENT OF STIPULATION
BREACH OF CONDITION CAN BE TREATED AS BREACH OF WARRANTY
BREACH OF WARRANTY CANNOT BE TREATES AS BREACH OF CONDITION
ETERNIST EVEREST Vs CG ABRAHAM
Geetha Theatre at Shoranur, Pallakad, Asbestos bought from Coimbatore worth Rs 45,815/- on 16 Nov 1985.
Dec 1985, after monsoon Jun 1986.Reps - Problem of ventilation, lime coating.Moved to local court and then to high court.
ETERNIST EVEREST Vs CG ABRAHAM
Bought by Haridas Bhagat (Agent) Oct 85.Reps - Problem of ventilation, lime coating.Inspected by Commissioner 11 Apr 1989,
found defective curing of sheets (fissures).QC of company.Order placed and info on tele, made available
at short notice.
ETERNIST EVEREST Vs CG ABRAHAM
Caveat emptor (let the buyer beware) Buyer take chance/care Sec 16 – there was an implied warranty as to the quality of articles sold that it was fit for the purpose for which it was sold. Judgment 75% compensation incl all expenses.
THANK YOU