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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Pooja bought a branded refrigerator from Kapoor Appliances for Rs 30,000 and later found that it was defective, breaching an implied condition. She accepted the goods and made use of them for months. Which remedy does the Act give her?

Pooja can only treat the breach of condition as a breach of warranty and claim damages, since she has accepted the goods. After acceptance the buyer loses the right to reject the goods, and stoppage in transit is a remedy of an unpaid seller.

  1. ATreat the breach of condition as breach of warranty and claim damagesCorrect
  2. BReject the goods and recover the price paid
  3. CSue for specific performance of a new delivery
  4. DClaim the right of stoppage in transit

Explanation

Where the buyer has accepted the goods, a breach of condition by the seller can only be treated as a breach of warranty, so the buyer cannot reject the goods. She may claim damages or a price reduction. Rejection is no longer open after acceptance, and stoppage in transit is a seller's right.

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