Business Law

Difference Between Condition And Warranty – Stipulation

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.BasisConditionWarranty
1NatureA condition is the main object of the contract.A warranty is collateral to the object of the contract.
2RemediesIf a condition is breached, the aggrieved party has the right to repudiate the contract, and is entitled to damages from the defaulting partyA breach of warranty does not entitle the aggrieved party to repudiate the contract, it only entitles it to damages from the other party.
3Legal EffectThe contract ceases to be legal on the breach of a condition.A breach of warranty does not have any legal effect on the contract.
4TreatmentThe 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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