Section 12(2) states that a condition is a stipulation which is essential to the main purpose of the contract. The breach of a condition gives rise to a right to treat the contract as repudiated or broken.




Example – A buys from B a hair oil advertised as pure coconut oil. The oil turns out to be mixed with herbs. A can return the oil and claim the refund of price.


Section 12(3) states that a warranty is a stipulation which is collateral to the main purpose of the contract. The breach of a warranty gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated.


Example – A while selling his car to B, stated the car gives a mileage of 12 kms per litre of petrol. The car gives only 10 kms per litre. B cannot reject the car. It is breach of warranty. He can only claim

damages for the loss due to extra consumption of petrol.





Definition A stipulation  which  is  essential  to  the

main purpose of the contract.

A stipulation  which  is  collateral  to  the  main

purpose of the contract.

Remedy The aggrieved  party  can  terminate  the contract,  claim  damages  or  treat  it  as

breach of warranty

The  aggrieved   party   cannot   terminate   the contract but can only claim damages
Treatment A breach of condition can be treated as a

breach of warranty

A  breach  of  warranty  cannot  be  treated  as

breach of condition.

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  1. IMRAN LASKAR 6 years ago

    truly its vry hlpful…

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