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CONDITION AND WARRANTY
NEMO DAT QUOD NON HABET AND ITS 
EXCEPTIONS
RIGHTS OF UNPAID SELLER
Page 2


CONDITION AND WARRANTY
NEMO DAT QUOD NON HABET AND ITS 
EXCEPTIONS
RIGHTS OF UNPAID SELLER
WHAT IS A CONDITION
A C O N D I T I O N IS A S T I P U L AT I O N
E S S E N T I A L TO T H E M A I N P U R P O S E OF
T H E C O N T R A C T, B R E A C H OF W H I C H
G I V E S R I S E TO T R E AT T H E C O N T R A C T
AS R E P U D I AT E D OR B R O K E N .
Page 3


CONDITION AND WARRANTY
NEMO DAT QUOD NON HABET AND ITS 
EXCEPTIONS
RIGHTS OF UNPAID SELLER
WHAT IS A CONDITION
A C O N D I T I O N IS A S T I P U L AT I O N
E S S E N T I A L TO T H E M A I N P U R P O S E OF
T H E C O N T R A C T, B R E A C H OF W H I C H
G I V E S R I S E TO T R E AT T H E C O N T R A C T
AS R E P U D I AT E D OR B R O K E N .
WHAT IS WARRANTY
A warranty is a stipulation collateral to the main
purpose of the contract the breach of which gives
rise to claim for damages but not to a right to reject
the goods and could not treat the contract as
repudiated or broken.
Page 4


CONDITION AND WARRANTY
NEMO DAT QUOD NON HABET AND ITS 
EXCEPTIONS
RIGHTS OF UNPAID SELLER
WHAT IS A CONDITION
A C O N D I T I O N IS A S T I P U L AT I O N
E S S E N T I A L TO T H E M A I N P U R P O S E OF
T H E C O N T R A C T, B R E A C H OF W H I C H
G I V E S R I S E TO T R E AT T H E C O N T R A C T
AS R E P U D I AT E D OR B R O K E N .
WHAT IS WARRANTY
A warranty is a stipulation collateral to the main
purpose of the contract the breach of which gives
rise to claim for damages but not to a right to reject
the goods and could not treat the contract as
repudiated or broken.
DIFFERENCE BETWEEN CONDITION AND 
WARRANTY
C O N D I T I O N
Condition is an essential
term or stipulation of the
contract which must be
fulfilled for the
performance of the
contract.
Breach of condition gives
right to the party to reject
the contract and also a
right to claim damages.
Breach of condition may be
treated as breach of
warranty
W A R R A N T Y
Warranty is a collateral or
incidental stipulation to
the main purpose of the
contract.
Breach of warranty does not
gives right to the party to
reject the contract. It only
give right to claim
damages only.
The breach of warranty
cannot be treated as
breach of condition
Page 5


CONDITION AND WARRANTY
NEMO DAT QUOD NON HABET AND ITS 
EXCEPTIONS
RIGHTS OF UNPAID SELLER
WHAT IS A CONDITION
A C O N D I T I O N IS A S T I P U L AT I O N
E S S E N T I A L TO T H E M A I N P U R P O S E OF
T H E C O N T R A C T, B R E A C H OF W H I C H
G I V E S R I S E TO T R E AT T H E C O N T R A C T
AS R E P U D I AT E D OR B R O K E N .
WHAT IS WARRANTY
A warranty is a stipulation collateral to the main
purpose of the contract the breach of which gives
rise to claim for damages but not to a right to reject
the goods and could not treat the contract as
repudiated or broken.
DIFFERENCE BETWEEN CONDITION AND 
WARRANTY
C O N D I T I O N
Condition is an essential
term or stipulation of the
contract which must be
fulfilled for the
performance of the
contract.
Breach of condition gives
right to the party to reject
the contract and also a
right to claim damages.
Breach of condition may be
treated as breach of
warranty
W A R R A N T Y
Warranty is a collateral or
incidental stipulation to
the main purpose of the
contract.
Breach of warranty does not
gives right to the party to
reject the contract. It only
give right to claim
damages only.
The breach of warranty
cannot be treated as
breach of condition
IMPLIED WARRANTY AND CONDITION
A. 1)Condition as to title
There are three implied condition on the part of the
seller regarding title to the goods.
A. In case of a sale, he has a right to sell the goods.
In case of an agreement to sell, the seller will have
a right to sell the goods at the time when the
property is to pass.
B. The buyer shall have and enjoy quiet possession
of the goods
C. Goods shall be free from any charge or
encumbrance
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33 videos|59 docs|18 tests

FAQs on PPT - Conditions and Warranties - - Business Law - B Com

1. What is the difference between conditions and warranties in a contract?
Ans. Conditions and warranties are two types of terms in a contract. A condition is an essential term that goes to the root of the contract and its breach allows the innocent party to terminate the contract and claim damages. On the other hand, a warranty is a minor term that does not go to the root of the contract and its breach only entitles the innocent party to claim damages.
2. Can conditions and warranties be expressly stated in a contract?
Ans. Yes, conditions and warranties can be expressly stated in a contract. Parties to a contract can clearly specify certain terms as conditions or warranties to avoid any ambiguity or misunderstanding. This helps in determining the consequences of a breach and the rights of the parties involved.
3. Is it possible for a condition to be treated as a warranty?
Ans. In certain situations, a condition can be treated as a warranty. This occurs when the innocent party decides to waive the condition and continue with the contract, treating the breach as a warranty instead. However, this can only happen if the innocent party gives express or implied consent for the condition to be treated as a warranty.
4. Can a breach of warranty be considered a repudiation of the contract?
Ans. No, a breach of warranty cannot be considered a repudiation of the contract. Unlike a breach of condition, a breach of warranty does not give rise to a right of immediate termination. The innocent party can only claim damages for the breach of warranty and continue with the contract.
5. How can a party determine whether a term is a condition or a warranty?
Ans. The determination of whether a term is a condition or a warranty depends on the intention of the parties at the time of contract formation. Courts consider various factors such as the importance of the term, the consequences of its breach, and the overall purpose of the contract. If the term is found to be a condition, the innocent party can terminate the contract. If it is a warranty, the innocent party can only claim damages.
33 videos|59 docs|18 tests
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