PPT - Conditions and Warranties, Sale of Goods Act - 1930 | Business Laws for CA Foundation PDF Download

 Page 1


The Sale Of Goods Acts,1930 
(Conditions & Warranties) 
 
CPT Section B Mercantile Law Unit 2 
Dr. Anju Gupta 
Page 2


The Sale Of Goods Acts,1930 
(Conditions & Warranties) 
 
CPT Section B Mercantile Law Unit 2 
Dr. Anju Gupta 
Learning Objectives 
Meaning and types of conditions and 
warranties 
Doctrine of Caveat Emptor and its 
Exception 
Distinguish between Conditions and 
Warranties 
2 
Page 3


The Sale Of Goods Acts,1930 
(Conditions & Warranties) 
 
CPT Section B Mercantile Law Unit 2 
Dr. Anju Gupta 
Learning Objectives 
Meaning and types of conditions and 
warranties 
Doctrine of Caveat Emptor and its 
Exception 
Distinguish between Conditions and 
Warranties 
2 
Meaning of Stipulation 
• A stipulation in a contract of sales of goods may be a 
condition or warranty [Section 12(1)] 
• (A) Meaning of Condition :- 
• A condition is a stipulation – 
(a) Which is essential to the main purpose of  the contract 
(b) The  breach of which gives the aggrieved party a right 
to terminate the contract. [Sec 12 (2)] 
Page 4


The Sale Of Goods Acts,1930 
(Conditions & Warranties) 
 
CPT Section B Mercantile Law Unit 2 
Dr. Anju Gupta 
Learning Objectives 
Meaning and types of conditions and 
warranties 
Doctrine of Caveat Emptor and its 
Exception 
Distinguish between Conditions and 
Warranties 
2 
Meaning of Stipulation 
• A stipulation in a contract of sales of goods may be a 
condition or warranty [Section 12(1)] 
• (A) Meaning of Condition :- 
• A condition is a stipulation – 
(a) Which is essential to the main purpose of  the contract 
(b) The  breach of which gives the aggrieved party a right 
to terminate the contract. [Sec 12 (2)] 
(B) Meaning of Warranty:- 
• A warranty is a stipulation – 
(a) Which is collateral to the main purpose of the 
contract  
(b) The breach of which gives the aggrieved party a right 
to claim damages but not a right to reject goods and 
to terminate the contract [Sec 12(3)] 
Page 5


The Sale Of Goods Acts,1930 
(Conditions & Warranties) 
 
CPT Section B Mercantile Law Unit 2 
Dr. Anju Gupta 
Learning Objectives 
Meaning and types of conditions and 
warranties 
Doctrine of Caveat Emptor and its 
Exception 
Distinguish between Conditions and 
Warranties 
2 
Meaning of Stipulation 
• A stipulation in a contract of sales of goods may be a 
condition or warranty [Section 12(1)] 
• (A) Meaning of Condition :- 
• A condition is a stipulation – 
(a) Which is essential to the main purpose of  the contract 
(b) The  breach of which gives the aggrieved party a right 
to terminate the contract. [Sec 12 (2)] 
(B) Meaning of Warranty:- 
• A warranty is a stipulation – 
(a) Which is collateral to the main purpose of the 
contract  
(b) The breach of which gives the aggrieved party a right 
to claim damages but not a right to reject goods and 
to terminate the contract [Sec 12(3)] 
Conditions & Warranties 
Stipulation 
Conditions  Warranties 
Express Implied  
Implied Express