Question

Which of the following is an incorrect statement for explaining the condition and warranty under the Sale of Goods Act, 1930?

• A. A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.
• B. A warranty is a stipulation collateral to the main purpose of the 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.
• C. Whether a stipulation in a contract of sale is a condition or a warranty does not depend on the construction of the contract.
• D. A stipulation may be a condition, though called a warranty in the contract.

Answer 1

The Correct Option is C

Under the Sale of Goods Act, 1930, whether a stipulation is a condition or warranty depends on the construction of the contract. The nature of the stipulation is determined based on the intent of the parties and the purpose of the agreement. Therefore, statement (c) is incorrect.