Question
Under Section 13 of the Sale of Goods Act, 1930, when
does a condition reduce to the level of a warranty?ÂSolution
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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