Multiple choice

A stipulation that is essential to the main purpose of a contract is called

  1. condition

  2. warranty

  3. pledge

  4. lien

Reveal answer Fill a bubble to check yourself
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.