This document presents information on conditions and warranties in contracts for the sale of goods. It defines conditions as essential stipulations and warranties as collateral stipulations made at the time of sale. Breach of a condition allows the buyer to rescind the contract and claim damages, while breach of a warranty only permits damages. Conditions and warranties can be express or implied. The key implied conditions relate to title, description, quality/fitness, wholesomeness, and samples. Implied warranties guarantee quiet possession and freedom from encumbrances. The main difference between conditions and warranties is their importance in the contract and the consequences of breach.

1. BUSINESS LAW
PRESENTATION ON
THE
TOPIC
CONDITIONS AND WARRANTIES
PRESENTED BY ROHAN GOYAL OF BCOM PART 1
INSPIRED BY HONOURABLE PROFESSOR DEEPAK GOYAL(EX MD AT ECCC)
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2. CONDITIONS AND WARRANTIES
A STIPULATION GIVEN AT THE TIME OF MAKING THE
CONTRACT OF THE SALES IN THE RESPECT OF THE
PROPERTY OF THE GOODS IS KNOWN AS
CONDITIONS AND WARRANTIES.
STIPULATIONS
CONDITIONS WARRANTIES

3. MEANING OF CONDITION
Condition is the stipulation given at the time of
making the contract which is essential for the main
purpose of the contract and the condition can
become warranty.
ESSENTIAL ELEMENTS OF THE CONDITION
1.Essential for the main purpose of the contract
2.Breach of the condition destroy the very purpose of
the contract.
3.Breach of the condition gives the buyer the right to
claim damages and right to rescind the contract.
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4. MEANING OF THE WARRANTY
Warranty is the stipulation given at the time of the
making the contract of the sales which is collateral to
the main purpose of the contract and the warranty
cannot become the condition.
ESSENTIAL ELEMENTS OF THE WARRANTY
1.It is the collateral to the main purpose of the contract.
2.Breach of the warranty do not destroy the very purpose
of the contract.
3.Breach of the warranty gives right to only claim
damages and buyer cannot rescind the contract.
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5. CLASSIFICATION OF CONDITIONS AND
WARRANTIES
EXPRESS IMPLIED
EXPRESS CONDITIONS AND WARRANTIES
Express conditions and warranties are those
stipulations which are formed by the agreement
between the buyer and seller at the time of
making the contract of sales.
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6. IMPLIED CONDITIONS
1.CONDITION AS TO TITLE:The person who had right to
sell the goods can only transfer the ownership to the
another person and this is known as condition as to
title. The person who do not have right to sell the goods
cannot transfer the goods better than owner of the
goods.
2.SALE DESCRIPTION:There is implied condition that seller
should sell the goods equal to the description given by
him to the buyer.
Sale description can include:
a. When the buyer had seen the goods.
b. When the buyer had seen the goods but had trust on
the seller’s words.
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7. 3.CONDITION AS TO QUALITY OR FITNESS: The
condition as to quality or fitness can be implied if
the buyer had made the purpose known to the
seller, he relies on the seller’s skills and judgement,
and the seller deals in the goods that can fulfil the
purpose.
4.CONDITION AS TO WHOLELSOME: There is implided
conditon that goods transferred should be fit for the
consumption as it should not contain stones and any
other harmful material.
5.SALE BY SAMPLE:There is implied condition on the
part of the seller that the goods transfered should
match with the sample shown to the buyer at the
making of the contract of sales.
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8. IMPLIED WARRANTIES
1.IMPLIED WARRANTY OF QUIET POSSESION: There
is implied warranty that after the transfer of
possesion, the buyer can freely use the goods and
seller and no third party will going to interfere in the
use of the goods.
2.IMPLIED WARRANTY OF FREE FROM ENCUBERNCE:
There is implied warranty that property of goods
transferred should be from any charge and the
goods should not kept intially as pledge for the
performance of promise of repaying debt.
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9. DIFFERENCE BETWEEN CONDITION
AND WARRANTY
1.IMPORTANCE IN THE CONTRACT: The condition is
essential for the main purpose of the contract and the
warranty is collateral for the main purpose of the
contract.
2.CONSEQUENCE OF BREACH: The breach of the
condition gives the right to rescind the contract, right to
claim damages and the breach of the warranty gives to
right to only claim damages.
3.OPTION OF THE TREATMENT: The buyer can treat
condition as the warranty but cannot treat warratny as
the condition.
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10. CONCLUSION
AFTER ANALYISING THE CONDITONS AND WARANTIES
WE CAN CONCLUDE THAT BREACH OF THE
CONDITION CAN BE TREATED AS BREACH OF THE
WARRANTY WHEN THE BUYER USES ONLY RIGHT TO
CLAIM DAMAGES ON THE BREACH OF THE
CONDITION.