Section 12
Condition and warranty
ActIn forceProvision 12 of 63
Section 12
(1)
A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or warranty.
(2)
A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.
(3)
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.
12
(4)
Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract.
The stipulation may be a condition, though called a warranty in the contract.