Home > Topics > Business Laws > Conditions & Warranties

Conditions & Warranties ๐Ÿค

When you buy something, the seller makes certain promises. Some promises are BIG (Condition). Some are small (Warranty).

Why does it matter? Because if a promise is broken, your rights depend on whether it was a Condition or Warranty.


Definition ๐Ÿ“–

Condition (Section 12(2)): A vital/essential term of the contract. If broken, you can:

  1. Reject the goods, AND
  2. Claim damages.

Warranty (Section 12(3)): A minor/collateral term. If broken, you can:

  1. Claim damages only.
  2. Cannot reject goods.

The Difference (Simple Way) ๐ŸŽฏ

Condition: The MAIN promise. (e.g., "This is a Honda car"). โ†’ Breach: If it's actually a fake Chinese copy, you can return it + claim money.

Warranty: A SIDE promise. (e.g., "The car has leather seats"). โ†’ Breach: If seats are fabric, you can claim โ‚น10,000 for lower value, but you MUST keep the car.


Condition can become Warranty ๐Ÿ”„

When?

  1. Waiver: Buyer chooses to treat breach of Condition as breach of Warranty (and keeps goods).
  2. Acceptance: After buyer accepts goods, he cannot reject for breach of Condition. He can only claim damages (as if it was Warranty).
'Acceptance' doesn't mean 'signing'

Acceptance happens when:

  • Buyer intimates seller that he accepted goods, OR
  • Buyer does something inconsistent with seller's ownership (e.g., Modifies the goods), OR
  • After lapse of reasonable time, buyer keeps goods without rejecting.

Quiz Time! ๐ŸŽฏ

Loading quizโ€ฆ


๐Ÿ’ก Final Wisdom: "Condition is the foundation. Break it, and you can demolish the deal. Warranty is the paint. Break it, and you can only ask for a discount!" ๐Ÿ—๏ธ

Next up: Caveat Emptor - Buyer Beware! โš ๏ธ