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      Question

      According to Sale of Goods Act,

      1930
      A A stipulation in a contract of sale with reference to goods which are the subject thereof may be a only a condition Correct Answer Incorrect Answer
      B A stipulation in a contract of sale with reference to goods which are the subject thereof may be a only a warranty. Correct Answer Incorrect Answer
      C 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. Correct Answer Incorrect Answer
      D A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to treat the contract as repudiated. Correct Answer Incorrect Answer
      E A stipulation called a warranty in the contract may only be a warranty. Correct Answer Incorrect Answer

      Solution

      Section 12 of Sale of Goods Act, 1930 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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