by The Sale of Goods Act, 1930, makes a distinction between conditions and warranties in a contract of sale. The terms “condition” and “warranty” have specific meanings under the Act and have different legal consequences for the parties involved.
Conditions:
Conditions are terms that are essential to the contract and are of such importance that if they are breached, the injured party has the right to terminate the contract and claim damages. Conditions are often described as terms that go to the root of the contract. For example, in a contract for the sale of a car, a condition may be that the car must be in good working order. If the car is not in good working order, the buyer has the right to reject the car and claim damages.
Warranties:
Warranties, on the other hand, are terms that are not essential to the contract and are of less importance than conditions. If a warranty is breached, the injured party has the right to claim damages, but cannot terminate the contract. Warranties are often described as terms that are ancillary to the main purpose of the contract. For example, in a contract for the sale of a car, a warranty may be that the car has a certain mileage. If the mileage is incorrect, the buyer may claim damages, but cannot terminate the contract.
The Act also recognizes a third category of terms, called “innominate terms”. These are terms that may be treated as either conditions or warranties, depending on the circumstances of the case.
It is important to note that the distinction between conditions and warranties is not always clear-cut, and will depend on the specific terms of the contract and the intention of the parties. However, the distinction is significant, as it determines the legal rights and remedies available to the parties in case of a breach.
Essentials:
Importance of distinction: It is important to distinguish between conditions and warranties in a contract, as it determines the rights and remedies available to the parties in case of a breach. If a condition is breached, the aggrieved party has the right to terminate the contract and claim damages. If a warranty is breached, the aggrieved party can only claim damages.
Innominate terms: The Act recognizes that some terms may not clearly be classified as either conditions or warranties. These terms are known as innominate terms. The effect of a breach of an innominate term will depend on the seriousness of the breach. If the breach is serious enough, the aggrieved party may be entitled to terminate the contract and claim damages.
