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Short Answer Question (3 Marks) · Q8

Q.When is a condition in a contract of sale treated as a warranty?

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Section 13 of the Sale of Goods Act, 1930 sets out two distinct situations in which a broken CONDITION is reduced to the remedy available for a broken WARRANTY (i.e., damages only, with no right to reject the goods):

  1. Section 13(1) — voluntary waiver/election: the buyer may, at his own choice, either WAIVE the condition altogether, or elect to TREAT its breach as a breach of warranty, claiming damages instead of rejecting the goods.
  2. Section 13(2) — automatic downgrade on acceptance: where the contract of sale is NOT SEVERABLE (cannot be split into independent parts) and the buyer has already ACCEPTED the goods, or part of them, any breach of a condition to be fulfilled by the seller can THEREAFTER be treated only as a breach of warranty — the buyer LOSES his right to reject the goods — unless a term of the contract, express or implied, says otherwise. …

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