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Distinction between condition and warranty You may summarize the difference as follows:
1. As to value. A condition is a stipulation which is essential to the main purpose of the contract, whereas a warranty is a stipulation which is collateral to the main purpose of the contract. [Sec. 12(2)(3).
2. As to breach. The breach of a condition gives the aggrieved party the right to repudiate the contract and also to claim damages, whereas the breach of warranty gives the aggrieved party a right to claim damages only.
3. As to treatment. A breach of condition may be treated as a breach of warranty. But a breach of warranty can not be treated as a breach of condition.
When breach of Condition is to be treated as Breach of Warranty:
Sec-13 deals, where breach of condition is to be treated as breach of warranty. In this situation the buyer can claim only damages and cannot rescind contract.
The Cases are as Follows
1. Voluntary waiver by buyer. In a breach of condition by seller the buyer may instead elect to waive the condition i.e to treat the breach of condition as a breach of warranty and accept goods and sue the seller for damages.
Example: A agrees to supply B 10 bags of first quality sugar @ Rs. 625 per bag but supplies only second quality sugar, the price of which is Rs. 600 per bag. There is a breach of condition and the buyer can reject the goods. But if the buyer so elects, he may treat it as a breach of warranty, accept the second quality sugar and claim damages @ Rs. 25 per bag.
Acceptance of goods by buyer
When the buyer has accepted the goods and subsequently he comes to know of the breach of the conditions, he cannot reject them, but can only maintain an action for damages. This case does not depend on the will of the buyer but the law compul-sorily treats a breach of condition as a breach of warranty.
In case the buyer has accepted only part of the goods and the contract indivisible, he will have to treat the breach of condition as a breach of warranty and accept the remaining part also. But in case of divisible contracts, he can repudiate as regards remaining goods, if he has accepted only part thereof.
1. As to value. A condition is a stipulation which is essential to the main purpose of the contract, whereas a warranty is a stipulation which is collateral to the main purpose of the contract. [Sec. 12(2)(3).
2. As to breach. The breach of a condition gives the aggrieved party the right to repudiate the contract and also to claim damages, whereas the breach of warranty gives the aggrieved party a right to claim damages only.
3. As to treatment. A breach of condition may be treated as a breach of warranty. But a breach of warranty can not be treated as a breach of condition.
When breach of Condition is to be treated as Breach of Warranty:
Sec-13 deals, where breach of condition is to be treated as breach of warranty. In this situation the buyer can claim only damages and cannot rescind contract.
The Cases are as Follows
1. Voluntary waiver by buyer. In a breach of condition by seller the buyer may instead elect to waive the condition i.e to treat the breach of condition as a breach of warranty and accept goods and sue the seller for damages.
Example: A agrees to supply B 10 bags of first quality sugar @ Rs. 625 per bag but supplies only second quality sugar, the price of which is Rs. 600 per bag. There is a breach of condition and the buyer can reject the goods. But if the buyer so elects, he may treat it as a breach of warranty, accept the second quality sugar and claim damages @ Rs. 25 per bag.
Acceptance of goods by buyer
When the buyer has accepted the goods and subsequently he comes to know of the breach of the conditions, he cannot reject them, but can only maintain an action for damages. This case does not depend on the will of the buyer but the law compul-sorily treats a breach of condition as a breach of warranty.
In case the buyer has accepted only part of the goods and the contract indivisible, he will have to treat the breach of condition as a breach of warranty and accept the remaining part also. But in case of divisible contracts, he can repudiate as regards remaining goods, if he has accepted only part thereof.
