Conditions and Warranties (Sections 12-17) are obligations undertakings in sale of goods contracts. Conditions (essential terms): Non-fulfillment gives buyer right to reject goods and sue for damages. Warranties (non-essential): Breach gives only damages right; goods cannot be rejected for warranty breach. Implied conditions: (1) Title—seller has right to sell goods; (2) Quiet possession—buyer gets peaceful possession; (3) Quality—goods fit for purpose; (4) Fitness—goods suitable for specific use communicated to seller; (5) Merchantability—goods of saleable quality. Express conditions/warranties: Parties may agree to specific conditions. Sale by description: Goods must correspond with description; non-correspondence is condition breach. Sample sale: Goods must correspond with sample in quality and defects. Case law: Charnock v. Liverpool establishes fitness for purpose application. Buyer's knowledge: If buyer examines goods, implied conditions regarding apparent defects waived. For accountants, understanding conditions/warranties affects warranty liabilities and returns provisions in revenue recognition. Exam tip: Distinguish conditions from warranties; identify which implied conditions apply; assess whether express terms modify implied obligations.