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Difficulty: HardSale of Goods Act: Provisions, Terms, Conditions, and Warranties

Under the Sale of Goods Act, if a buyer accepts goods despite the seller's breach of an implied condition, the buyer forfeits all legal remedies and is completely barred from claiming monetary damages for the breach.

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Answer

The statement is false. Accepting goods following a breach of an implied condition does not extinguish all legal remedies; rather, it converts the breach of condition into a breach of warranty, allowing the buyer to sue for monetary damages while losing only the right to reject the goods.
The statement is false because the Sale of Goods Act explicitly provides that a buyer who accepts defective or non-conforming goods after a breach of an implied condition can elect or be required to treat that breach as a breach of warranty. This preserves the buyer's right to claim monetary compensation while terminating only the right to return the items.

Step-by-Step Solution

1
Analyze the legal definition of a condition versus a warranty under the Sale of Goods Act.
A condition is a fundamental term going to the root of a contract, allowing repudiation and damages. A warranty is a subsidiary term allowing damages only.
Understanding the core distinction establishes the baseline remedies available for contract breaches.
2
Examine the statutory effect of accepting goods after a breach of condition.
Under Section 11 of the Sale of Goods Act, when a buyer accepts goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty.
Acceptance alters the nature of the remedy available to the buyer from contract cancellation to financial compensation.
3
Evaluate whether accepting the goods bars all remedies.
The buyer loses the right to reject the goods and terminate the contract, but retains the statutory right to diminish or extinguish the price or sue the seller for damages.
This proves that the statement claiming total forfeiture of remedies is legally incorrect.

Key Concept

Treatment of a Breach of Condition as a Breach of Warranty upon Acceptance of Goods
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Topics

Sale of Goods Act: Provisions, Terms, Conditions, and Warranties

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