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 - its breach gives the aggrieved party the right to reject the goods (rescind). A warranty is a minor stipulation - breach only gives right to damages, not rescission. Guarantee is not a Sale of Goods Act term.

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