- Meaning of Condition:
The terms which are essential or root element of contract of sale are regarded as condition and any secondary or assisting terms of sale are regarded as warranty. Both the condition and warranty play an important role in the contract of sale of goods. It is necessary to fulfill both the conditions and warranties before the performance of such contract, otherwise performance of contract becomes impossible and the contract can be terminated.
A condition is the major term of the contract of sale of goods. It relates with the main purpose of the contract of sale of goods. The term 'condition' has not been defined under the Nepal Contract Act, 2056 but in this respect, Indian sale of goods Act, 1930 Section 12(2) has made clear definition of condition. According to Section 12(2) of Indian sale of goods; "A condition is a stipulation (agree to the term in the contract) essential to the main purpose of the contract; the breach of which gives the aggrieved party a right to repudiate (to refuse or to reject) the contract itself." In addition, he may maintain an action for damages for loss suffered, if any, the whole contract is broken.
On the basis of above definition, we can conclude some of major terms of contract of sale of goods are called conditions. By virtue of the violation of those conditions contract can be repudiated.
Types of Conditions
a. Express Condition: A condition may be either express or implied. Conditions, which are inserted in clear words in the contract, are called express conditions.
- Implied Condition: Implied conditions are those, which are not expressly incorporated in clear words in the contract by the parties at the time of forming. The implied conditions are stated as below:
- If sale by description.
- Condition as title of goods.
- Sale of sample.
- Merchantable quality of goods.
- Condition as usage of trade.
- Sale by sample and description etc.