Distinguish between a Condition and a Warranty in relation to sale of goods.

Condition

A condition is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party a right to repudiate the contract itself [Section 12(2)].

Warranty:

A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives the aggrieved party a right to-sue for the damages only, and not to avoid the contract itself [Section 12(3)].  Whether a stipulation is a condition or warranty in a contract will depend upon circumstances.

Difference between Condition and Warranty

Condition

  1. It is essential to the main purpose the contract.
  2. It is breach gives the aggrieved party a right to terminate the contract and also claim damages.
  3. Breach of condition may be treated as a breach of warranty.

Warranty

  1. It is only collateral or subsidiary to main purpose of the contract.
  2. It is breach gives the aggrieved party a right to claim damages only.
  3. Breach of warranty cannot be as a breach of condition.
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