A stipulation that is essential to the main purpose of a contract is called
-
condition
-
warranty
-
pledge
-
lien
A
Correct answer
Explanation
Option (1) is correct: A stipulation that is essential to the main purpose of a contract is called condition.
Option (2) is incorrect: A stipulation that is collateral to the main purpose of a contract is called warranty.
Option (3) is incorrect: A pledge means mortgaging goods for a loan.
Option (4) is incorrect: A lien means to retain possession.