Condition and Warranty | Meaning | Differences
Table of Contents
What is a Condition in Contract of Sale?
A condition is a stipulation which is essential to the main purpose of the contract. If there is a breach of condition, the affected party can treat the contract as repudiated. (repudiate means to disown or reject.
What is a warranty in Contract of Sale?
A warranty is a stipulation which is collateral to the main purpose of the contract. If there is a breach of warranty, the affected party can only claim damages and has no right to reject the contract.
Differences between Condition and Warranty
| Condition | Warranty |
|---|---|
| 1. A condition is a stipulation which is essential to the main purpose of the contract. | A warranty is a stipulation which is collateral to the main purpose of the contract. |
| 2. For the breach of condition, the affected party can abandon the contract of sale. | For the breach of warranty, the affected party can claim damages only. |
| 3. A breach of condition may be treated as a breach of warranty. This happens if the affected party decides to claim damages only. | A breach of warranty cannot be in any way treated as breach of condition. |
There can be any number of express conditions and warranties in a contract of sale. The implied conditions and warranties are contained in the Sale of Goods Act and these are given below.
