Section 107

Section 107 of the Indian Contract Act, 1872, deals with the circumstances under which a condition in a contract of sale may be treated as a warranty. According to this section, where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated. If the buyer elects to treat the breach of the condition as a breach of warranty, he must do so expressly or impliedly, and the seller is entitled to claim damages for the breach of warranty. However, if the buyer has been induced to enter into the contract by a false representation made by the seller, and the condition is a condition precedent to the formation of the contract, the buyer may treat the breach of the condition as a ground for rescinding the contract.