What is the difference between condition and warranty? A contract of sale contains many stipulations regarding, the nature and quality of goods.
These stipulations are not of equal importance. Some of them are the essence of the contract while others are not so indispensable.
Whether any stipulation is condition or warranty depends on the construction of the contract and difference between condition and warranty may be defined as follows:
See Also: Rights and Duties of Agents
What is Condition
A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to the right to treat the contract as repudiated.
A condition is such a stipulation which is essential for the performance of the contract. If it is not fulfilled by any of the parties, the other party has a right to break the contract.
What is Warranty
A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to claim for damages but not a right to reject the goods and treat the contract as repudiated.
See Also: Difference Between Sale and Agreement to Sell
The performance of which is not compulsory for the performance of the contract of sale. If it is not fulfilled, it gives the right to the injured party to claim for damages against the other. It does not give the right of the repudiation of the contract.
Examples of Condition and Warranty
A orders B to send 100 pairs of shoes to be sold at Eid-occasion. He clearly states that quantity should reach to A’s store ten days before the Eid-day.
B sends the pairs of shoes two days after the Eid. This will be a breach of condition and buyer can refuse to accept the quantity.
But if the seller sends the quantity ten days before the Eid but leaves it to the buyer station and informs the buyer about it. This will be a breach of warranty and not of condition.
What is the Difference Between Condition and Warranty
The following are the points of difference between condition and Warranty.
By Meaning
A condition is a stipulation essential to the main purpose of the contract but a warranty is a stipulation which is collateral to the main purpose of the contract and is not be main purpose of the contract.
Importance
A condition is the essence of the contract and is more important than the warranty. The warranty is less important than the condition and not the essence of the contract of sale. Therefore, if the warranty is not fulfilled, the contract cannot be repudiated.
Effect on Contract
The Breach of the condition gives the right to the injured party to repudiate the contract. The breach of the warranty does not give right to the party to repudiate the contract but give only the right to claim for damages.
Treatment
The breach of the condition ‘may be treated as a breach of the warranty at the option of the aggrieved party. But the breach of the warranty cannot be treated as the breach of the condition.
Claim for Damages
When a condition is not fulfilled, the injured party can repudiate the contract and can claim for damages.
In case of non-fulfillment of warranty, the party can claim only for damages and cannot repudiate the contract.
See Also: Definition of Agent | Types of Agents | Personal Liabilities
Condition as Warranty
The following are the cases in which a condition can be treated as warranty.
At Buyer’s Will
Where the contract of sale is subject to any condition to be fulfilled by the seller and that condition is not fulfilled, now it depends on the buyer he may treat the condition as condition and repudiate the contract, or he may treat the condition as warranty and claim for damages.
Illustration: Orders B to send 100 pairs of lady shoes. But B sends 100 pairs of gents’ shoes. A accepts the shoes and claims for damages. A treat the condition as warranty.
When Contract Partly Performed
Where the contract of sale is not severable and the buyer has accepted the goods or Bart of the goods.
The breach of any condition to be the seller can only be treated as a breach of warranty and contract cannot be repudiated. The buyer can claim only for damages.
Illustration: A has agreed to purchase a plant from B for his factory. He has received half Part Of the plant and the remaining half part B does not fulfill the condition of the contract.
Now A cannot reject the remaining part of plant and condition will be treated as warranty.
Implied Conditions and Warranties
There are a number of stipulations in a contract of sale. Some of them are conditions and others may be warrantied.
Moreover, these conditions or warranties may be expressed or implied. Sec. 14 to 17 of the Sale of Goods Act deals with the implied conditions and warranties.
According to these sections, the following are implied conditions and warranties.
Implied Conditions
Implied conditions are conditions, which are not expressed by the parties but are incorporated by law and they are as follows.
- Right to Sell
In every contract of sale, there is an implied condition on the part of the seller that in case of a sale, he has a right to sell the goods and that in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass. Sec 14(a).
- Sale By Description
Where there is a contract for the sale of goods by description. There is an implied condition that the goods, shall correspond with the description. Sec. 15.
If the goods are pot’ according to the description, the buyer can reject the goods and can repudiate the contract.
- Sale By Sample
In the case of sale by sample, there are implied conditions under Sec. 17 that
- The bulk should correspond with the sample in quality:
- That the buyer shall have a reasonable opportunity of comparing of bulk with the sample;
- That the goods shall be free from any defect, rendering them Unmerchantable, which would not be appearing on reasonable examination of the sample, when goods are not according to sample, the buyer can reject the goods and can repudiate the contract.
- Sale By Description and Sample
If the sale is by a sample as well as by description it is an implied condition that goods should be sent to correspond, buyer, is both not according with a sample to sample and description as Well Sec 15.
If the goods description, thus A has a right to reject the goods and can repudiate the contract.
See Also: Contract of Indemnity | Parties to the Contract
- Purpose of Goods
When the buyer expressly or by implication fells the purpose of purchase of goods to the seller and relies on the seller’s skill and judgment, then it is an implied condition that the goods shall be reasonably fit for such purpose.
- Implied Condition as to Quality
Where goods are bought by description from a seller who deals in goods of that description whether he is manufacturer or producer or not, there is an implied condition that the goods shall be of merchantable quality Sec. 16(2).
When the goods are not of mercantile quality, the buyer has a right to reject the goods.
- Usage of Trade
An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade section 1 (3).
Implied Warranties
The following are implied warranties under the contract of sale
- Possession of Goods
There is an implied warranty that the buyer shall have and enjoy quite possession of the goods Sec. 14(b). Until the goods are not given in the possession of the buyer, there cannot be a sale.
- Free from Charges
There is an implied warranty that the buyer shall be free from any charge or encumbrance in favor of any third party not declared or known to the buyer before or at the time when the contract is made.
Sec. 14(C). It is an implied warranty that the buyer of goods has no charge on behalf of goods sold to him unless such charge is declared to him at the time of contract of sale is made
- Usage of Trade
There is an implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.
See Also: Contract of Guarantee | Parties | Modes of Termination
When the buyer describes to the seller, the purpose for which goods purchased are to be used, then it is the condition as well warranty that the quality of the goods must be suitable for the purpose described by a buyer to the seller at the time of contract of sale is made.
