ConditionsandWarranties

Sec.11StipulationastotimeUnlessadifferentintentionappearsfromthetermsofthe
contract,stipulationastotimeofpaymentarenotdeemedtobeoftheessenceofacontractof
sale.Whetheranyotherstipulationastotimeisoftheessenceofthecontractornotdepends
onthetermsofthecontract.
Examples:Thesectionmaybeillustratedbythefollowingexamples
1)
Saleofsomestacksofoakonthesellersground,uponthetermsthattheymightremainthere
forfourmonthsandthebuyershouldpaywithin12weeksofthecontract.Thesellerontheexpiration
of12weeksdemandedthepricewhichthebuyerfailedtopay.Laterthebuyeraskedforfurthertime
whichthesellerrefusedtogive,andsaidthatasthebuyerhadnotpaidheshouldnothavethestacks.
Thebuyerlatertenderedtheprice,butthesellerrefusedtoacceptitandsubsequentlyresoldthe
stacks.TheBuyerwasheldentitledtorecoverinanactionoftrover.(MartinDaleV/s.Smith1841)
2)
SaleofgoodstobeshippedandbillofladingtobedatedDecemberJanuary.Goodswere
shippedon30thJanuarybutthebillofladingwasdated2ndFebruarythebuyerwasheldentitledto
reject.
Stipulationsastotimeofpayment

Aspunctualpaymentdoesnotgotothewholeconsiderationofthesale,thefailurebythe
buyertopayontheappointeddaydoesnotasarule,entitlethesellertotreatthecontractas
repudiated,thoughhemaybeentitledtowithholddeliveryuntilthepriceispaidandtoresell
thegoodsifthebuyerdoesnotpayortenderthepricewithinareasonabletime.Consequently,
ifbeforesuchresalethebuyertenderstheprice,eventhoughitbeonadateafterthedate
nameinthecontractthesellercannot,intheabsenceofastipulationtothecontrary,treatthe
contractasatanendandrefusetoallowthebuyertohavethegoods;andasubsequentresale
byhimwillbetortious.Thetimecannotbetakentobetheessenceofthecontractincase
wherethecontractitselfdoesnotstipulatethetimeforpaymentoftheprice.
Stipulationsastotimeofperformanceofotherterms

AstheActdealswithallkindsofcontractsofsale,andnotonlywithcommercialcontracts,the
enactmentastostipulationsastotime,otherthanastopaymentoftheprice,isnecessarilyput
insomewhatgenerallanguage.Ifamanordersasuitofclothes,apromisebythetailorthathe
shallhaveitbyacertaindatewouldnot,generallyspeaking,beoftheessenceofthecontract,
thoughitmightbeifhewasorderingcourtdressforthepurposeofattendingacourtona


particularday.Butinthecaseofcommercialcontracts,althoughoccasionallystipulationsasto
timemaynotbeoftheessence,theusualruleisthattheyare.
Incontractsofsalesofgoods,thecomputationofthetimeofperformancefromaparticular
date,actoreventisprimafacieexclusiveoftheday,actoreventandinclusiveofthedayof
performance,althoughthispresumptionmaybedisplacedbyacontraryintentionappearing
fromthecontractanditssurroundingcircumstances.
Waiverofthestipulations
Stipulationsastotimemaybewaivedbythepartyinwhosefavourtheyareinsertedeither
expresslyorbyimplication,andifhedoessohecannotafterwardstreatthefailuretocomply
withthembyotherpartyasgivingarighttorescindthecontract.Where,however,aninitial
stipulationmakingtimeoftheessenceofthecontractiswaived,reasonablenoticetomake
timeagainoftheessencewouldgiverisetotherighttorescind.Therecan,strictlyspeaking,be
nowaiverafterbreach,buttoacceptgoods,thoughdeliveredlate,isoftenspokenofasa
waiveroftherightofactionwhichthebreachhasgiven.
Section12.ConditionandWarranty
1. Astipulationinacontractofsalewithreferencetogoodswhicharesubjectthereofmaybea
conditionorawarranty.
2. Aconditionisastipulationessentialtothemainpurposeofthecontract,thebreachofwhich
givesrisetoarighttotreatthecontractasrepudiated.
3. Awarrantyisastipulationcollateraltothemainpurposeofthecontract,thebreachofwhich
givesrisetoaclaimfordamagesbutnottoarighttorejectthegoodsandtreatthecontractas
repudiated.
4. Whetherastipulationinacontractofsaleisaconditionorawarrantydependsineachcaseon
theconstructionofthecontract.Astipulationmaybeacondition,thoughcalledawarrantyin
thecontract.
Synopsis
1.

Conditionsandwarranties2.ExpressConditions

3.

ExpressWarranties

5.

Impliedconditionsandwarranties6.Puffs

1.ConditionsandWarranties

4.Representations


Thissectionisineffectanadditionaldefinitionorinterpretationsectionandsuppliesawant
longfeltinIndia.AtthetimewhentheContractActwaspassedthephrasewarrantyhadbeen
andusedwithseveraldifferentmeaningsandshadesofmeaning,andthedifficultyhadbeen
increasedbysomeofthosemeaningsoverlappingsomeofthemeaningsoftheword
condition.TheContractActusedthewordwarrantyinthisambiguoussenseanddidnot
defineit.Theresultwasthatthecourtshadtodecideontheconstructionofeachsection
whetherthewordwarrantywasusedinthestrictsenseoftheEnglishLaw,asitwas.The
presentActavoidsthisconfusionandusesthewordscondition,andwarrantyanddrawsa
distinctionbetweenthetwo.
2.ExpressConditions

Thepartiesiftheywish,mayputthecontentsofanyparticularstatementorpromisewhich
passesbetweenthemonthesamefootingasthedescriptionofthethingcontractedfor,sothat
ifitisnotmadegoodbythepartyundertakingit,thefailureisdeemedtobeatotalfailureof
theperformance,andtheotherisatleastwhollydischarged,andmayinadditionrecover
damagesforsuchfailureofperformance.Thisisaconditioninthepropersense,asdefinedin
subs(2).Intheusualsense,theconditionmeansanessentialundertakinginthecontract
whichonepartypromiseswillbemadegood.Ifitisnotmadegood,notonlywilltheother
partybeentitledtorepudiatethecontract,butalsotosuefordamagesforbreach.
3.ExpressWarranties
Theremayalsobe,andthereoccurincommonpractice,auxiliarypromisesorundertakingsof
whichthebreachisnotintendedtoavoidthecontract,butonlytogivearemedyindamages.
Thesearewarrantiesinthepropersense,asdefinedinsubs(3).Aconditionofsale,protecting
asellerinrespectofmisdescription,maybeoverriddenbyawarrantygivenbeforethesale
takesplaceanddamagesmayberecoveredforbreachofthewarranty.Whetherastatementis
toberegardedaswarrantymustbeobjectivelyascertainedbyaskingwhetheradoptingthe
standardofareasonableman,theotherpartyassumedthattherepresentorwastoberegarded
asundertakinglegalliabilityforhisassertions.Theimportanceofthestatement,therelative
knowledgeandmeansofknowledgeoftheparties,andthepossibilityofverificationarethe
relevantfactorswhichwouldindicatewhetherthestatementisawarranty.Thus,statements
maybewarrantieswhenmadebydealers,thoughtheywouldnotbewarrantiesifmadeby
privatesellers;forthedealersmaybeinpossessionofspecialknowledge,expertiseandmeans
ofinformationnotavailabletoordinarypersons.
5. Representations
Anaffirmationasregardsthegoods,ifitistohavecontractualeffect,mustbepartofthe
contract;ifitisnot,itisonlyarepresentation,theuntruthofwhichwillnot,intheabsenceof
fraud,giverisetoanactionanfordamages,thoughitmayenabletheotherpartytorescindthe


contractandsometimesarepresentationmayamounttoaconditionprecedenttothe
formationofthecontract,sothatifbeuntrue,theotherpartyisdischargedfromallliability.It
dependsupontheintentionofthepartieswhetheranaffirmationmadeatthetimeof,orduring
thenegotiationsforsale,istobetreatedasacondition,awarrantyoramererepresentation:
andalthoughanassertionmadebythesellerofafactunknowntothepurchasermaybestrong
evidencethatitwasintendedasawarranty,itisnotnecessarysoinlaw.Iftherepresentation
doesnotformpartofthecontract,thatis,ifitisneitheraconditionnorawarranty,itamounts
toanexpressionofopinionnotintendedtoenterthebargainanditsnofulfilmentdoesnotgive
risetoanyrighttoalegalaction.

6. ImpliedConditionsandWarranty
Althoughthepartiesmayhaveusednoexpressedwordsthatwouldcreatesuchastipulation,
thelawannexestoomanycontracts,conditions,thebreachofwhichmaybetreatedbythe
buyerasavoidingthecontractorgivenarighttodamages.Thesearecalledasimplied
conditionsandareenforcedonthegroundsthatthelawinfersfromallthecircumstancesofthe
case,thatthepartiesintendedtoaddsuchastipulationtotheircontract,butdidnotputitinto
expressedwords.
Mostofthestatutoryimpliedtermsastosellersdutiesastotitle,confirmativewithdescriptionand
quality,termsdesignatedaconditionsbythecontractitself,termssimilartothoseoralready
treatedasconditionsinanothercase,timeclausesinmercantilecontractsandresidualcategory
wherebreachedoftermistobetreatedasgivingrighttotreatthecontractasdischargedare
consideredastermslikelytobetreatedasconditions.
Theexistenceofanemployedconditionorwarrantymayberebuttedbyproofoffacts,which
showacontraryintention

7. Puffs
Amerepuffisavagueandextravagantstatementsopreposterousinitsnaturethatnobody
couldbelievethatanyonewasmisledbyit.Theextenttowhichastatementmaybeso
categoriseddependsonthedegreeorobviousnessofitsuntruth.Thecircumstancesofits
makingandinparticularontheexpertiseandknowledgeattributabletothepersonwhomitis
made.
Section13:Whenconditiontobetreatedaswarranty,


1. Whereacontractofsaleissubjecttoanyconditiontobefulfilledbytheseller,thebuyermay
waivetheconditionorelecttotreatthebreachoftheconditionasabreachofwarrantyannot
asagroundfortreatingthecontractasrepudiate.
2. Whereacontractofsaleisnotseverableandthebuyerhasacceptedagoodsorpartthereof,or
wherethecontractisforspecificgoods,thepropertyinwhichhaspassedtothebuyer,the
breachofanyconditiontobefulfilledbythesellercanonlybetreatedassbreachofwarranty
andnotasgroundforrejectingthegoodsandtreatingthecontractasrepudiatedunless,there
isatermofacontract,expressedorimpliedtothateffect
3. Nothinginthissectionshallaffectthecaseofanyconditionorwarrantyfulfilmentofwhichis
excusedbylaw,byreasonofimpossibilityorotherwise.