Condition – If an express stipulation is a part of the contract, i.e., its fulfillment is essential for the contract to be completed, it is deemed to be a condition. If the condition is not met, the aggrieved party is entitled to terminate the contract.
Warranty – It is clear from what has been said that warranty is not an essential object of the contract; it only helps expedite the execution of the contract. If the warranty is violated, the contract does not terminate-only the aggrieved party can file a suit for damages. If a condition of the contract is violated, the contract terminates.
A warranty, on the other hand, does not terminate the contract if it is violated because the buyer is not solely dependent on it in a contract of sale-he only recognises it as being related to the contract and being helpful in its execution.
Difference Between Condition And Warranty
Sr. No. | Basis | Condition | Warranty |
1 | Nature | A condition is the main object of the contract. | A warranty is collateral to the object of the contract. |
2 | Remedies | If a condition is breached, the aggrieved party has the right to repudiate the contract, and is entitled to damages from the defaulting party | A breach of warranty does not entitle the aggrieved party to repudiate the contract, it only entitles it to damages from the other party. |
3 | Legal Effect | The contract ceases to be legal on the breach of a condition. | A breach of warranty does not have any legal effect on the contract. |
4 | Treatment | The contract ceases to exist on the breach of a condition and the aggrieved party can only be compensated by damages it receives from the other party. | A breach of warranty is not deemed to be a breach of condition, and the aggrieved party cannot repudiate the contract on such ground. |
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