Question

Define and distinguish between a condition and a warranty. Under what circumstances a breach of condition is to be treated as a breach of warranty?

Answer 1

-> A condition refers to a requirement which should be performed or fulfilled before the completion of a contract.

-> A warranty refers to an assurance given by the seller to the buyer with respect to the performance or the state of the product.

-> Difference between a condition and warranty:

1. Fulfilment of condition is essential for the completion of the contract. However warranty is an additional assurance provided which is over and above the completion of the contract. Basically completion of the contract is not dependent upon fulfilment of warranty.

2. A breach of condition will lead to termination of the contract whereas in case of breach of warranty, the contract stays intact. The buyer can only claim damages for the breach of warranty.

3. Condition is directly associated to the main objective of the contract whereas warranty is an additional provision/guarantee which is over and above the main objective of the contract.

-> When a contract of sale consists of more than one condition and it is not severable and the buyer has also accepted either whole or part of the goods, then in such a case if seller breaches any condition, it can only be treated as a breach of warranty. Here breach of such condition cannot nulify the whole contract and it can only be treated as a breach of warranty.