Difference between Condition and Warranty

In the new-age economy, trade, and commerce are increasing extensively, and people are buying products and services. The Sale of Goods Act 1930 governs the sale of all products and services in India. Earlier, these provisions were covered by the Indian Contract Act 1872, but to provide a separate framework, a separate act was required. The Sale of Goods Act 1930 covered some important elements of the Indian Contract Act 1872 to provide a separate act to give a framework to cover the ambit of a sales contract. Conditions and warranties are the rights and remedies available in case of a breach or case of any damage to a contract of sale. The Sale of Goods Act 1930 discusses the provisions of conditions and warranties in contracts concerning the sale of goods.

What is Condition under Sale of Goods Act 1930?

According to Section 12 of the Sale of Goods Act, a condition is a basic phrase that serves as the foundation for the contract. It is a basic obligation and is crucial to the contract. If the stipulated facts are true and the requirements are met, the contract’s purpose is completed. The condition is a fundamental prerequisite for the foundation of all contracts. Every party to the contract must fulfill their portion of the condition, and if there is a violation of the condition, the aggrieved party may treat the deal as rejected. If the seller fails to meet the terms of the sale of the products, the buyer has the right to refuse to accept the items or regard the contract as repudiated.

For example, in a sales contract, if you are purchasing a car and the express condition is that it must be a certain model, obtaining a different model would be considered a breach of contract. This breach of condition allows the offended party to reject the automobile and cancel the contract.

As per Section 12(2) of the Sale of Goods Act 1930, “a condition is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party a right to repudiate the contract itself.”

What is Warranty under Sale of Goods Act 1930?

In Indian contracts, a warranty is essentially an additional assurance to the underlying agreement. If this promise is breached, the harmed individual can seek compensation, but they cannot refuse the products. This assurance also ensures that the items are free of any hidden charges or difficulties that the customer was unaware of when they agreed to the contract. The Sale of Goods Act 1930, which is part of Indian contracts, addresses these agreements for the sale of commodities. It is critical to understand the distinction between conditions and warranties since they define each person’s rights and solutions if an issue arises. If a condition is breached, the innocent party can cancel the contract and seek compensation. But if it’s a warranty, they may only seek reimbursement. Understanding the laws in Indian contracts, particularly where products are involved, is critical for determining what to do if a problem arises.

According to Section 12(3) of the Sale of Goods Act, 1930 “A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives the aggrieved party a right to sue for damages only, and not to avoid the contract itself.”

Difference between Conditions and Warranties

Basis	Conditions	Warranties
Definition	The Condition are the fundamental purposes of the contract .	A Warranty is a secondary promise in a contract.
Section	The Sale of Goods Act 1930 defines a condition in Section 12(2).	The Sale of Goods Act 1930 defines warranties in Section 12(3).
Purpose	The goal of the conditions is to preserve your rights as a customer, while protecting businesses from fraudulent claims or misuse of the warranty system.	Warranties, on the other hand, are used to verify that items satisfy a specific standard of quality before they are sold.
Violation	A breach of condition would be not satisfying the established terms and conditions to get warranty benefits.	A warranty violation involves selling a product that does not fulfill the quality criteria agreed upon by both parties.
Breach	A breach of condition does not fulfill the terms and conditions for receiving warranty coverage.	A breach of warranty is selling a product that does not fulfill the quality standards agreed upon by both parties.
Available Remedy	Cancel the contract as well as claim damages.	Claim for damages only.
Example	In a contract of purchase of car, the specific model of the that car would be a condition.	A promise that any repairs will be done by the showroom after delivery would be a warranty.

Conclusion

The Sales of Goods Act 1930 is the umbrella act that contains all the provisions related to a contract of sale. The act has provided for remedies for breach and damage. A warranty is an auxiliary written promise that is unrelated to the core objective of the contract. Breaching a warranty results in a damage claim, but it does not give you the right to reject the products. In contrast, a condition is a basic contract prerequisite. The distinction between conditions and warranties is critical, affecting the rights and remedies available in the event of a violation. The condition is a fundamental prerequisite for the foundation of all contracts. Every party to the contract must execute their part of the condition, and if there is a violation of the condition, the aggrieved party may treat the deal as rejected.

Condition and Warranty – FAQs

Which act deals with the provisions of conditions and warranties in India?

The Sale of Goods Act of 1930 deals with the provisions of conditions and warranty in India.

On the basis of remedy, what is the difference between a condition and a warranty?

In condition, one can cancel the contract as well as claim damages. Whereas, in a warranty, one can only claim for damages.

What is the purpose of a warranty?

A warranty is a legally binding pledge in a sales contract that ensures the buyer that the goods or service are defect-free. It usually specifies precise solutions, such as repair or replacement, if the item fails to satisfy the guarantee requirements.

How many types of conditions are there?

As per the Sale of Goods Act of 1930, there are two sorts of conditions: express conditions and implied conditions.

What is the difference between an implied warranty and an express warranty?

An express warranty refers to precise guarantees given by a seller to a buyer, whether orally or in writing. In contrast, an implied warranty is an unwritten assurance that a product or service will work as intended, which applies in the absence of expressed commitments.