Conditions And Warranties Ppt 55b1k

Conditions And warranties

Condition [sec12(2)]

A condition is a term (oral or written) which goes directly 'to the root of the contract', or is so essential to its very nature that if it is broken the innocent party can treat the contract as discharged. That party will not therefore be bound to do anything further under that contract.

Warranty [sec12(3)]

A warranty is a term of the contract which is collateral or subsidiary to the main purpose of the contract. It is therefore not so vital as to affect a discharge of the contract. A breach of warranty only entitles the innocent party to an action for damages; he cannot treat the contract as discharged.

Conditions v. Warranties  Two cases involving opera singers show the difference between conditions and warranties .

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In Poussard v Spiers and Pond, Mrs. Poussard was an opera singer.  She agreed to sing in an opera starting on 28 November.  However, she became ill and was unable to sing until 4 December. The opera company had to hire another singer so that the opera could start on 28 November. They could only get another singer if they hired her for all the performances of the opera. They did this and refused the services of Mrs Poussard once she was better Mrs. Poussard raised a court action to try to make the company pay her However, the court said that Mrs. Poussard breached a condition of the contract when she was unable to perform on 28 November This was a basic term of the contract

The position was different in Bettini v Gye        

Bettini was an opera singer He agreed to sing in London in a number of theatres beginning on 30 March He also agree that he would arrive in London 6 days before the first performance in order to practice. Bettini became ill and did not arrive in London until 3 days before the first performance The opera company refused to allow him to sing They said he had breached the contract However, the court said that the part of the agreement about practicing was a warranty not a term . That meant it was not a basic part of the contract.  It was subsidiary part.  

Types of conditions and warranties 1) Express – which are expressly provided in the contract. 2) Implied- which the law implies into the contract unless the parties stipulate to the contrary.

Implied conditions •

Condition as to title [sec.14(a)] right to sell.

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- seller has the

Sale by description (sec.15)- goods shall correspond with the description.

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Condition as to quality or fitness [sec16(1)] Condition as to merchantability [sec.16(2)] Condition implied by custom- fitness for a particular purpose may be annexed by the usage of trade [sec.16(3)]

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Sale by sample (sec.17) Condition as to wholesomeness

Implied warranties 1. Warranty of quiet possession [sec.14(b)] 2. Warranty of freedom from encumbrances [sec.14(c)] 3. Warranty as to quality or fitness by usage of trade [sec16(4)] 4. Warranty to disclose dangerous nature of goods

CAVEAT EMPTOR In a contract of sale of goods the seller is under no duty to reveal unflattering truths about the goods sold. Therefore, when a person buys some goods, he must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose, he cannot blame anybody excepting himself.

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