Conditions & Warranties š¤
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 š
Condition (Section 12(2)): A vital/essential term of the contract. If broken, you can:
- Reject the goods, AND
- Claim damages.
Warranty (Section 12(3)): A minor/collateral term. If broken, you can:
- Claim damages only.
- Cannot reject goods.
The Difference (Simple Way) šÆ
Condition: The MAIN promise. (e.g., "This is a Honda car"). ā 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"). ā Breach: If seats are fabric, you can claim ā¹10,000 for lower value, but you MUST keep the car.
Condition can become Warranty š
When?
- Waiver: Buyer chooses to treat breach of Condition as breach of Warranty (and keeps goods).
- Acceptance: After buyer accepts goods, he cannot reject for breach of Condition. He can only claim damages (as if it was Warranty).
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! šÆ
Test Your Knowledge
Question 1 of 5
1. Breach of Condition allows the buyer to:
š” 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!" šļø
Next up: Caveat Emptor - Buyer Beware! ā ļø