Conditions and Warranties

A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty.

Condition: A condition is a stipulation which is essential to the main purpose of the contract.
Warranty: A warranty is a stipulation which is collateral to the main purpose of the contract.

Distinction between a condition and warranty

Difference as to value Difference as to breach Difference as to treatment When condition to be treated as warranty

Express and Implied Conditions/Warranties

Implied Conditions Condition as to title Sale by description Condition as to quality/fitness Condition as to merchantability Condition implied by custom Sale by sample Condition as to wholesomeness

Implied Warranties
Warranty of quiet possession Warranty of freedom from encumbrances Warranty as to quality/fitness by usage of trade Warranty to disclose dangerous nature of goods

CAVEAT EMPTOR
It means let the buyer beware. When a person buys some goods, he must examine them thoroughly.

Exceptions: Fitness for buyers purpose Sale under a patent/trade name Merchantable quality Usage of trade Consent by fraud