Section 12 of The Sale of Goods Act, 1930 View Chapter 2

Condition and warranty.

Conditions and waranties

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

   (2)  A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.

   (3)  A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.

   (4)  Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.