Business Law Notes - Conditions PDF

Topic: Conditions Student Name: Ritika & Harshita Date: 2 September 2024 Class: 3 Section: A Subject Faculty: Ms. Roli Wadhwa Subject Code: BBA-201  Contents of the Presentation  Introduction  Essential Elements of the Condition...

Topic: Conditions Student Name: Ritika & Harshita Date: 2 September 2024 Class: 3 Section: A Subject Faculty: Ms. Roli Wadhwa Subject Code: BBA-201  Contents of the Presentation  Introduction  Essential Elements of the Condition  Implied Conditions  Conclusion DME Management School 2  Introduction  According to section 12(1) a condition is a stipulation: essential to the main purpose of the contract the breach of which gives the rise to right to terminate the contract  A condition in a contract of sales of goods is of fundamental nature for breach of which the buyer can repudiate the contract and can claim damages. DME Management School 3 Example:  A (buyer) told B (car dealer) that he wants to buy a car for the purpose of touring. B suggested Maruti Car to A. After buying the car A realized, that the car is not suitable for the purpose of touring. Now, here A has a right to return the car to B and receive the refund for the same. DME Management School 4  Essential Elements of the Condition  Essential for the main purpose of the contract  Breach of the condition destroy the very purpose of the contract  Breach of the condition gives the buyer the right to claim damages and right to rescind the contract DME Management School 5  Implied Conditions  Implied Condition as to title: Seller has the right to sell the goods when seller has the title/ ownership of the goods.  Example: A bought a car from B and used it for 4 months. B had no title on it because he has obtained this car by theft and consequently A had to surrender it to real owner. A was entitled to recover the full price even though he has used it for 4 months. DME Management School 6  Implied Condition under a sale by description: Implied Condition is that if seller is selling the goods by giving / stating the description to buyer then the goods must correspond with the description.  Example: If A purchases a piece of clothing and that piece of clothing does not match its description, then A can claim its price back. A has the right to reject it in the context of implied conditions that it did not match the description given by the seller. DME Management School 7  Implied Condition under a sale by sample: Implied Condition is that if seller is selling the goods by giving sample to the buyer first, then buyer must be supplied with goods.  Example: A shoe manufacturer sends a perfect shoe sample to the seller. But at the time of delivering the actual order, he delivers shoes of poorer quality. According to the conditions implied in a Contract of Sale of Goods, the seller can claim a refund as well as a compensation price for the damage caused. DME Management School 8  Implied Condition in sale by sample as well as by description: Where goods are sold by samples as well as by descriptions, the goods must correspond both with the sample and with the description. Example: A agrees to sell some books which is of horror stories to B. The goods that A tenders are found to be equal to the sample but containing a mixture of action stories. In such a case B can reject the goods. DME Management School 9  Conclusion  After analyzing the conditions we can conclude that breach of the condition can be treated as breach of the warranty when the buyer uses only right to claim damages on the breach of the condition. DME Management School 10