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    Question

    A warranty is a stipulation collateral to the main

    purpose of the contract, the breach of which gives rise to
    A Claim for damages Correct Answer Incorrect Answer
    B Reject the goods Correct Answer Incorrect Answer
    C Treat the contract as repudiated Correct Answer Incorrect Answer
    D Reconstruction of the contract Correct Answer Incorrect Answer
    E Create charge or encumbrance Correct Answer Incorrect Answer

    Solution

    Contract Act Section 12 of Sale of Goods Act Condition and warranty— (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.

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