CA Foundation Exam  >  CA Foundation Questions  >  A warranty is a stipulation _________to the m... Start Learning for Free
A warranty is a stipulation _________to the main purpose of contract: 
  • a)
    Collateral 
  • b)
    Optional 
  • c)
    Contingent 
  • d)
    Essential 
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A warranty is a stipulation _________to the main purpose of contract:a...
Other stipulations, which are not essential are termed as 'warranty'. Both of these are collateral to a contract of sale of goods. Contract cannot be avoided for breach of warranty, but aggrieved party can claim damages.
View all questions of this test
Most Upvoted Answer
A warranty is a stipulation _________to the main purpose of contract:a...
Introduction:
A warranty is a stipulation that is collateral to the main purpose of a contract. It is an additional promise made by one party to the contract to provide a certain level of assurance or guarantee regarding the subject matter of the contract.

Explanation:
A warranty is a contractual provision that provides for a specific remedy if the product or service provided under the contract is defective or does not meet certain specified standards. It is separate from the main purpose of the contract, which is usually the exchange of goods or services for payment.

Collateral to the main purpose of a contract:
The term "collateral" refers to something that is complementary or supplementary to the main purpose. In the case of a warranty, it is collateral to the main purpose of the contract because it provides additional assurance or guarantee to the buyer or the party receiving the product or service. The main purpose of the contract is fulfilled through the exchange of goods or services, while the warranty provides a form of protection or recourse if the product or service does not meet the agreed-upon standards.

Example:
For example, let's say you purchase a new electronic device such as a smartphone. The main purpose of the contract is for you to receive the smartphone in exchange for payment. However, the manufacturer may also provide a warranty that guarantees the device will be free from defects for a certain period of time. This warranty is collateral to the main purpose of the contract because it provides an additional level of assurance to the buyer. If the device malfunctions or fails to meet the specified standards during the warranty period, the buyer can seek a remedy such as repair, replacement, or refund as specified in the warranty terms.

Conclusion:
In summary, a warranty is a stipulation that is collateral to the main purpose of a contract. It provides an additional level of assurance or guarantee regarding the subject matter of the contract, separate from the main exchange of goods or services. It is an important contractual provision that helps protect the interests of the buyer or the party receiving the product or service.
Explore Courses for CA Foundation exam
A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer?
Question Description
A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer?.
Solutions for A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A warranty is a stipulation _________to the main purpose of contract:a)Collateralb)Optionalc)Contingentd)EssentialCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev