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2006 (2) TMI 190 - SUPREME COURTWhether a stipulation in a contract of sale is a condition or a warranty depends, in each case on the construction of the contract? Held that:- It is true, where a stipulation in a contract of sale is a warranty, its breach may give use to a claim for damages but not to a right to reject the goods and treat the contract as repudiated, but where a stipulation in a contract of sale is a condition, its breach may give rise not only to a claim for damages but also generally to a right to treat the contract as repudiated. Although in terms of sub-section (3) of Section 12 no right accrues to a purchaser to reject the goods on breach of stipulation of warranty, the same would not mean that the extent of damages cannot be equivalent to the price of the goods inasmuch as such a power has specifically been conferred upon the Commission. Keeping in view the fact that the State Commission and National Commission cannot be said to have acted without jurisdiction, we are of the opinion that no case has been made out for interference with the impugned judgment.
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