1. Case 1 : (Implied conditions)
Patrick offered a house for sale to Peter, who agreed to buy at the stated price. Peter was however under the impression that the land on which it stood was a part of the deal. Patrick gave Peter the title deed for the house but not the land. Peter took Patrick to court. What was the likely outcome of the case?
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The Sale of Goods Act 1930 (hereinafter the Act) contains various provisions regarding the sale of goods. One such provision is of conditions and warranties. In Section 12 of the Act the meaning of conditions and warranties are given as under-
(1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a 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.
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