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
- It is essential to the main purpose the contract.
- It is breach gives the aggrieved party a right to terminate the contract and also claim damages.
- Breach of condition may be treated as a breach of warranty.
Warranty
- It is only collateral or subsidiary to main purpose of the contract.
- It is breach gives the aggrieved party a right to claim damages only.
- Breach of warranty cannot be as a breach of condition.