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At the time of selling the goods, a seller usually makes certain statements or representations with a view to induce the intending buyer to purchase the goods. Such representations are generally about the nature and quality of the goods and about their fitness for the buyer’s purpose. These representations aim at providing satisfaction to the buyer. Some of these representations are merely opinion which does not form a part of contract of sale, while some of them become a part of contract of sale.
A representation which forms a part of the contract of sale and affects the contract is called a ‘stipulation’, which may be either a condition or a warranty. Though condition and warranty denote the promise made by the seller, the Sale of Goods Act recognizes them separately as both differ in their nature.
Condition-If a stipulation is such that it affects the very basis of the contract, it is a condition. In other words condition is a stipulation which goes to the root of the contract and a breach of the same would allow the buyer to avoid the contract
Warranty-If the promise is such that it is collateral to the main purpose of the contract it is a warranty. Therefore a warranty refers to a stipulation which is attached to the main contract and a failure of the same does not allow a buyer to avoid the contract.
Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract.



X says to Y a horse dealer that he wants a horse for the purpose of racing and should be able to run at 60 km per hours. Y shows a particular horse and says that it runs at more than 60 km per hour and would fit the purpose of X. later X finds that the horse only at 45 km per hour. This is a breach of condition and would allow X to repudiate the contract.



X is to Y that he wants a “sound horse”. Y shows a particulars horse and further state that it can run at the speed of 60 km per hour. Y later on finds that, though the horse is sound but is able to run at 45 km per hour. Here the stipulation regarding soundness is a condition whereas the stipulation regarding speed is warranty. Therefore X can claim damages but not repudiate the contract.


Note: From the above example, we learn that the stipulation which goes to the root of the contract is a condition whereas a stipulation which is collateral to the contract is treated as a warranty.


A stipulation which goes the root of the contract and affects the very nature of the transaction.
Stipulation which is collateral to the contract and does not affect the very nature of the transaction.
A breach of condition allows the buyer to repudiate the contract
A breach of warranty allows a buyers only a claim for damages

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