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    Question

    Under Section 13 of the Sale of Goods Act, 1930, when

    does a condition reduce to the level of a warranty? 
    A When the seller requests the buyer to treat it as warranty Correct Answer Incorrect Answer
    B When the buyer explicitly waives the condition, or when the buyer accepts goods after breach of condition in an indivisible contract Correct Answer Incorrect Answer
    C All of the following: (i) when buyer waives the condition; (ii) when buyer treats breach as warranty; (iii) when buyer accepts whole or part of goods in an indivisible contract after breach Correct Answer Incorrect Answer
    D Only when the court orders such reduction Correct Answer Incorrect Answer
    E A condition can never be treated as a warranty under any circumstances Correct Answer Incorrect Answer

    Solution

    Section 13 provides three circumstances when a condition sinks to the level of a warranty: (1) the buyer may waive the condition; (2) the buyer may elect to treat breach of condition as breach of warranty and not ground for rejection; and (3) most importantly, "Where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty." Once goods are accepted in an indivisible contract, the buyer loses the right to repudiate for breach of condition and can only claim damages. This provision reflects the policy that once buyer has accepted goods, it is inequitable to allow repudiation for conditions. The buyer must act carefully to reject before acceptance to preserve the right to repudiate.

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