The chapter defines, Condition and warranty in The Sale of Goods Act, 1930. As we know, another main purpose of making law is take care of individual rights. Condition and warranty are actually essential element for making valid and legal contract.
According to the statutory law (The Sale of Goods Act,1930):
Section12(2) of the Act defines Condition as, ‘’ “A condition is a stipulation which is essential to the main purpose of the contract and the breach of the condition gives the aggrieved party a right to treat the contract as repudiate’’. On the other hand, Section 12(3) of the act, defines warranty as,’’ “A warranty is a stipulation which is collateral to the main purpose of the contract and breach of which gives the aggrieved party a right to claim damages only but not to a right reject the goods and treat the contract as repudiate”.
Distinction between the
Condition and warranty:
1. Essential
vs. Collateral:
> Condition is a stipulation essential to the main purpose
of the contract hut, warranty is a stipulation which is not
essential of the
contract but, it is collateral to the main purpose of the contract.
2. Essential
vs. Collateral:
> The breach of condition gives rise to repudiate the
contract but, the breach of warranty does not give rise to
repudiate the
contract.
3. Right
in case of breach:
> The breach of condition not only gives a right to treat
the contract void but also gives a right to claim damages
but, the breach of
warranty gives right to claim damages only.
4. Treatment:
> In certain circumstances the breach of condition can be
unilaterally treated as breach of warranty by the
affected party but, the
breach of warranty cannot in any circumstances be treated as breach of
condition
unilaterally by the affected party.