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Standard XII
Accountancy
Salary/Commission
A stipulation...
Question

A stipulation which is collateral to the main purpose of the contract and provides the buyer only right to claim the damages is known as _________.

A
condition
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B
guarantee
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C
warranty
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D
agreement to sell
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Solution

The correct option is C warranty
A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated.

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