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    Question

    Under the Sales of Goods Act, 1930, what is the

    distinction between a "condition" and a "warranty"?
    A A condition is optional; a warranty is mandatory Correct Answer Incorrect Answer
    B A condition is a fundamental term; breach gives right to reject goods and claim damages; warranty is subsidiary; breach gives damages only Correct Answer Incorrect Answer
    C A condition is for seller's benefit; warranty is for buyer's benefit Correct Answer Incorrect Answer
    D Condition relates to quality; warranty relates to quantity Correct Answer Incorrect Answer
    E No legal distinction exists between conditions and warranties Correct Answer Incorrect Answer

    Solution

    Under the Sales of Goods Act, 1930, Sections 12-17 define conditions as fundamental contractual terms, the breach of which gives the buyer the right to reject goods and claim damages (repudiatory breach). Warranties are subsidiary terms; breach gives only a claim for damages, not rejection rights. Conditions under the Act include: title, quiet possession, fitness for purpose, merchantable quality, and description. A breach of condition can be treated as breach of warranty if the buyer accepts goods with knowledge of breach or after lapse of reasonable time. However, statutory conditions (implied by law) cannot be excluded unless expressly agreed in writing, providing consumer protection.

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