Multiple choice

A stipulation in a contract of sale of goods whose violation by seller gives a right of rescission to buyer, is called

  1. guarantee

  2. warranty

  3. condition

  4. term
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A condition is a stipulation essential to the main purpose of the contract. Breach of condition gives the aggrieved party the right to treat the contract as repudiated and rescind it. In contrast, breach of warranty only gives right to claim damages but not to reject the goods.

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