A warranty is a kind of stipulation or terms. It is the secondary stipulation to the main purpose and to support the main purpose of the contract.

The Contract Act, 2056 is silent even about the term "warranty". But the Indian Sale of goods Act, 1930 has defined the term clearly. According to Section 12(3) of Indian Sale of goods Act, has stated; "A warranty is stipulation collateral to the main purpose of the contract; the breach of which gives the aggrieved party right to sue for damage only, and not to avoid the contract itself. In another word; some are minor terms and the stipulations, which may insert under the contract of sale of goods, are called warranties.

 Types of Warranty

 a. Express warranty: As like the condition of contract of sale of goods, the warranty also may be either express or implied.  Express warranties are those which clearly mentioned in such contract and the parties are agreed upon those at the time of formation of contract.

b. Implied warranty: Implied warranties are those which the law presumes to have been incorporated in the contract of sale inspite of fact that the parties have not expressly incorporated then in the contract of sale. They are as follow:

  • Warranty of quite possession of buyer: The buyer have enjoy quite possession of the In the case of breach of warranty the buyer is entitled to claim damages from the seller.
  • Warranty of freedom from any encumbrances or charges:
  • Warranty of use of trade.
  • Fitness of goods those are required for a purpose.

c. Warranty of disclosing the dangerous nature of goods to the ignorant buyer: In case the goods sold are dangerous nature he must warn the ignorant buyer of the probable danger. If there is breach of this warranty the buyer is entitled to claim compensation for the injury caused to him