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The term ‘condition’ is defined in Sec. 12 (2) of the Sale of Goods Act as under:
“A condition is a stipulation essential to the main purpose of the contract, the breach of which gives right to repudiate the contract and to claim damages.”
A condition is an important representation made by the seller and it is the main purpose of the contract. It is so essential that its non-performance may fairly be considered by the other party as a substantial failure to perform the contract. If it proves to be false, the buyer has the right to terminate the contract and to have a refund of the price.
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Raj purchased a Bike from Kiran on the statement made by him that bike can run 50km. per liter of petrol. However it was found that the bike can only run at 30km. per liter of petrol. It is a breach of condition and hence Raj can repudiate the contract, return the bike and have refund of price paid.

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