Condition
A condition is an important part of a contract. It is something essential for the contract to work properly. If the condition is not followed, the other person can cancel the contract and ask for compensation. For example, if someone buys a car and the condition is that it should be brand new, but the car is used, they can cancel the deal.
Warranty
A warranty is a less important part of the contract. It’s not essential for the deal to work, but if it’s broken, the person cannot cancel the contract. However, they can ask for compensation for the loss. For example, if the car is sold with a warranty that it has a certain brand of tires but it has a different brand, the buyer can’t cancel the deal but can ask for compensation.
Difference Between Condition and Warranty
| Basis | Condition | Warranty |
|---|---|---|
| 1. Importance | Main, essential part of the contract. | Secondary, less important part of the contract. |
| 2. Effect of Breach | Breaching a condition allows contract cancellation. | Breaching a warranty does not cancel the contract. |
| 3. Purpose | Affects the core purpose of the contract. | Supports the contract but is not critical. |
| 4. Legal Action | Breach allows canceling the contract and claiming damages. | Breach allows claiming damages but not canceling. |
| 5. Examples | Buying a car as “new” but getting a used car (breach of condition). | Car warranty for free servicing not honored (breach of warranty). |
| 6. Relation to Contract | Affects the core of the contract. | Does not affect the core of the contract. |
| 7. Right to Cancel | Breaching gives the right to cancel the contract. | Breaching does not give the right to cancel. |
| 8. Nature | Mandatory and essential to fulfill the contract. | Optional and supportive to the contract. |
| 9. Remedies for Breach | Can cancel the contract and claim damages. | Can only claim damages, not cancel the contract. |
| 10. Impact on Contract | May make the entire contract void. | Does not make the contract void. |
A condition is a very important part of the contract. If it’s not followed, the deal can be canceled.
A warranty is a smaller promise. If it’s broken, the deal won’t be canceled, but the person can ask for compensation for any loss.
Both condition and warranty help protect the buyer and seller.