A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives…
Under Section 12(3) of the Sale of Goods Act, 1930, a 'warranty' is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim…
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A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to
Answer and explanation
Correct answer C
Under Section 12(3) of the Sale of Goods Act, 1930, 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. By contrast, under Section 12(2), 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.
Option feedback
Option A
Incorrect because under Section 12(2) and (3) of the Sale of Goods Act, 1930, only the breach of a condition (not a warranty) gives rise to a right to treat the contract as repudiated.
Option B
Incorrect because under Section 12(3) of the Sale of Goods Act, 1930, breach of a warranty does not give the buyer a right to reject the goods.
Option C
Correct because under Section 12(3) of the Sale of Goods Act, 1930, 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.
Option D
Incorrect because Section 12(3) of the Sale of Goods Act, 1930 provides for a claim for damages upon breach of warranty, not a statutory right to replacement of the goods.
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