Condition and Warranty | Meaning | Differences

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.

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