What does section 12 of the Sale of Goods Act, 1930 call a stipulation that is collateral to the main…
Section 12(3) calls a collateral stipulation a warranty. Its breach gives rise to a claim for damages and does not, by itself, entitle the buyer to reject the goods and…
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What does section 12 of the Sale of Goods Act, 1930 call a stipulation that is collateral to the main purpose of a contract of sale?
Answer and explanation
Correct answer A
Section 12(3) calls a collateral stipulation a warranty. Its breach gives rise to a claim for damages and does not, by itself, entitle the buyer to reject the goods and treat the contract as repudiated.
A condition is essential to the main purpose of the contract under section 12(2). Whether a term is a condition or a warranty depends on construction of the contract under section 12(4).
Option feedback
Option A
Section 12(3) defines a warranty as a stipulation collateral to the main purpose of the contract.
Option B
Section 12 classifies stipulations as conditions or warranties. It does not use guarantee for a collateral stipulation.
Option C
An agreement to sell is a category of contract under section 4. It is not the classification of a collateral stipulation under section 12.
Option D
A condition is essential to the main purpose of the contract under section 12(2).
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