Under Section 12 of the Sale of Goods Act, 1930, which of the following statements is not correct?
Section 12 of the Sale of Goods Act, 1930 distinguishes a condition essential to the main purpose of the contract from a warranty collateral to that purpose. A breach of…
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Under Section 12 of the Sale of Goods Act, 1930, which of the following statements is not correct?
Answer and explanation
Correct answer B
Section 12 of the Sale of Goods Act, 1930 distinguishes a condition essential to the main purpose of the contract from a warranty collateral to that purpose. A breach of condition ordinarily gives a right to treat the contract as repudiated, subject to section 13. A breach of warranty gives a damages claim without a right to reject on that ground. The contract's label is not decisive. Section 12(4) permits a warranty-labelled stipulation to operate as a condition.
Option feedback
Option A
Incorrect (this statement is true). Under Section 12(1) of the Sale of Goods Act, 1930, a stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty.
Option B
Section 12(4) classifies the stipulation by construing the contract. A term described as a warranty can be a condition.
Option C
Incorrect (this statement is true). Under Section 12(2) of the Sale of Goods Act, 1930, 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 D
Incorrect (this statement is true). 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.
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