Q # 01: Define condition and warranty.
What is the difference
between two.
1) Introduction
In contract, condition is an act which binds the contractual party to perform certain act
which has been obligated upon the party at the time contract signed. For example, let's say
that I promise my brother that I'll wash the car if he'll clean my room. This agreement has a
condition. I'm not bound to wash the car unless my brother cleans my room. Contracts are
common in the business world. A contract is a type of legally binding written or spoken
agreement. A valid contract will create a mutual obligation. This means that each of the
parties is obligated, or required, to perform a duty under the contract. warranty has various
meanings but generally means a guarantee or promise which provides assurance by one
party to the other party that specific facts or conditions are true or will happen
2) Definition of warranty
warranty means a guarantee or a promise which provides assurance by seller to buyer that
specific facts or conditions are true or will happen
3) Definition of condition
In contract, condition is an act which binds the contractual party to perform certain act
which has been obligated upon the party at the time contract signed
4) Types of Warranty
Following are the two types of conditions and warranties. Details are as under
1. Expressed warranty
Under the sale contract, written warranty or express warranty is an agreement between
the seller and the buyer according to which seller is liable to repair or replace the thing
which has been sold by seller.
2. Implied warranty
The warranties which are applicable automatically by operation of law are called implied
warranties. And implied warranties ensure that purchased item is fit for the purpose
a. implied warranty of habitability
Implied warranty of habitability is a guarantee that a house is fit for live in
b. Implied warranty of fitness
This type of warranty provides a guarantee that the product recommended by a
salesperson is fit for a particular use for example if ali purchases of blender to crush the
ice under the recommendation of seller, and blender does not crush the ice ,buyer will
return the item under the implied warranty of fitness
c. Implied warranty of title
This warranty is implied in which it is not required to be placed in writing, ensuring the
buyer that the property will not be stolen, or will not to belong to someone else. This
ensures to customer that they will not pay twice for an item
d. implied warranty of merchantability
An implied warranty of merchantability applies to nearly all purchases as it guarantees
that the product will work for its intended purpose. For example, Rob buys a new bulb,
but it when he plugs it in at home, it does not work. Rob has the right to return the
bulb and exchange it for a working one, or receive a refund.
5) Types of conditions
Following are the two types of conditions and warranties. Details are as under
1. Expressed condition
These are those conditions which has clearly been defined and agreed by the parties
while entering into the contract. And such conditions may be written or spoken
2. Implied condition
These are those conditions which has not clearly been defined and agreed by the parties
while entering into the contract. The conditions which are applicable automatically by
operation of law are called implied condition
6) Difference between conditions & warranty
The following are the major differences between condition and warranty
1. As to nature
Condition is an obligation in his nature which requires to being fulfilled for
completion of contract
Warrant is a surety in nature given by the seller regarding the facts of the goods
2. Termination of contract
Breach of any condition may result in the termination of contract
Breach of warranty may not result the termination of the contract
3. Claim for damages
In case of breach of condition, the innocent party has the right to cancel the
contract and can claim for damages
In case of breach of warranty, the innocent party only can take legal action against
the other party
4. As to violation
Violation of a condition means violation of warranty too
But violation of warrant is not a violation of condition
5. As to importance
Condition is an important and integral part of the condition and it directly affects
the contract
Warranty is not so important part of the contract as condition and it does not
directly affect the contract
7) Conclusion
At the time of contract of sale, both the buyer and seller define some conditions regarding
payment, delivery, quality, quantity, etc. These can be either condition or warranty. Every
contract of sale has some implied conditions and warranties. Condition is such part of
contract which needs to be fulfilled by other person so that agreement between the parties
may complete. And warrant is surety which assures and protects the buyer rights and
enables him to take legal action against the seller if describes facts not prove true of happen
