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Which one of the following relates to warranty?  1. It is of vital importance for completion of contract 2. If there is breach, the aggrieved party can repudiate the contract 3. It is essential to the main purpose of the contract 4. In case of breach, the aggrieved party can claim only damages 

Which one of the following relates to warranty?  1. It is of vital importance for completion of contract 2. If there is breach, the aggrieved party can repudiate the contract 3. It is essential to the main purpose of the contract 4. In case of breach, the aggrieved party can claim only damages  Correct Answer 4

Warranty:

  1. According to Section 12(3) of the Sale of Goods Act, 1930, a warranty, is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.
  2. In other words, warranty is a stipulation which is not essential to the main purpose of the contract i.e., it is of a subsidiary or collateral nature.
  3. If there is a breach of warranty, the buyer cannot repudiate the contract, but he can only claim damages from the seller.
  4. In the case discussed above if the buyer had asked for a good car and while selling the car the dealer said that it could run for 15 km per litre of petrol. But it was discovered that it could run only 12 km per litre of petrol. Here, the statement made by the seller would amount to a warranty and the buyer could not terminate the contract and he was entitled to claim damages only. 

Related Questions

Consider the following statements:
(1) In case of breach of contract generally damages are awarded.
(2) In case of breach of contract, remedy of specific performance of contract is always given.
(3) In case of breach of contract, fine is also imposed along with the award of damages.
(4) In exceptional cases where damages are not adequate compensation, remedy of specific performance can be given.
Which of the statements given above are correct?
Consider the following set of legal propositions:
1. A person can claim damages for all wrongs he has suffered.
2. A person can claim damages for wrongs only if they are caused intentionally.
3. A person can claim damages for a wrong if it is caused by infringement of this legal right.
4. A person can claim damage even if he has suffered no loss.
Of the above propositions:
A stipulation essential to main purpose of contract, the breach of which gives an aggrieved party right to repudiate the contract is known as:
"When contract is broken then can an aggrieved party sue only for losses or damages which naturally arose out of the breach as also for other losses or damages which are result of breach of contract". In view of this statement, which of the following is correct?
Which of the following legal propositions are correct?
1. A person can claim damages even if he has suffered no loss.
2. A person can claim damages for such wrongs which are caused intentionally.
3. A person can claim damages for a wrong if it is caused by infringement of his legal right.
Which of the statement given above are correct?
Consider the following statements with regard to the consequences of breach of contract.
1. In case of breach of contract, the party who suffers is entitled to receive compensation for any loss or damage caused to him thereby, which the parties knew, when they made the contract, to be likely to result from the breach of it.
2. Such compensation is to be given for any remote and indirect loss or damage sustained by reason of the breach.
Which of the statements given above is/are correct?
A contract is said to be discharged by rescission: A. When terms of a contract are altered B. When a party makes novation of a contract C. When an aggrieved party exercises his option to avoid the contract D. When a party to a contract waives his rights under the contract E. Where none of the parties has performed its part for a long time and no other party has objected against it Choose the correct answer from the options given below:
Consider the following objectives of the law relating to damages:
1. Enrich the party who has sustained loss by breach of contract.
2. Punish the party who has committed the breach of contract.
3. Put the party, who sustained the loss, in the same position as if the contract has been performed.
Which of the statements given below is/are correct?
Propositions are:
1. Set-off and counter-claim arises out of the same transaction.
2. Set-off should not be barred on the date of the suit while counter-claim should not be barred on the date of filing of written statement.
3. Claim for set-off cannot exceed plaintiff's claim, whereas counter-claim can exceed the plaintiff's claim.
In respect of the aforesaid which is correct:
Mark the incorrect proposition:
1. Set-off is a statutory defence to a plaintiff's action, whereas a counterclaim is a cross-action.
2. Set-off and counter-claim arises out of the same transaction.
3. Set-off should not be barred on the date of the suit while counter-claim should not be barred on the date of filing of written statement.
4. Claim for set-off cannot exceed plaintiff's claim, whereas counterclaim can exceed the plaintiffs claim.
5. Both set-off and counter-claim cannot exceed the pecuniary jurisdiction of the court.