Difference Between Condition and Warranty

Edited by Diffzy | Updated on: August 11, 2022

       

Difference Between Condition and Warranty Difference Between Condition and Warranty

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Introduction

The two terms, condition and warranty are used most often while dealing with contracts, transactions, and buying and selling of goods and services. Every day, numerous transactions take place around the world. The sale of any good needs special attention and fulfilment of various requirements. To make any contract or transaction, a condition and a warranty are the two conditions that are of utmost necessity. Condition is that requirement that needs to be followed or performed before the completion of any other action. It is the fundamental or principal specification of the contract or the sale. A warranty, on the other hand, is the added specification that comes with the purchase of any good. It is an assurance provided by the seller to the consumer about the condition of the product that the purchased product is genuine and it is in good condition for use.

Condition vs Warranty

The key difference between a condition and a warranty is that a condition is a principal requirement which is essential to the purpose of the contract of sale. It is directly related to the objective of the contract. Whereas, a warranty is a kind of a written affirmation that is provided by the seller to the buyer. It states that the product is in its good state and its prescribed facts are genuine and ready for use. Warranty is an added qualification that a product possesses. An item's warranty is made available for a set period, beginning with the date of acquisition.

Differences Between Condition and Warranty in Tabular Form

Table: Condition vs Warranty
Parameters of Comparison
Condition
Warranty
Meaning
A condition may be defined as a need that must be met to conduct another action. It is a requirement that must be met before proceeding to the next proposal.
A warranty, on the other hand, is a guarantee provided by the seller on a condition of the product. It is a written assurance that the item is in its true and best quality concerning the product information.
Significance
It is directly associated with the objective of the contract. The significance of a condition lies in concerning contract that the breaking of which cancels out the determined contract.
It is a supplementary clause linked to the contract's subject matter. The significance of a warranty lies in the fact that the violation of a warranty won’t revoke the contract that has been placed.
Legal Section or Provision
Condition is characterized under Section 12(2) of the Indian Sale of Goods Act of 1930.
Warranty is defined under Section 12(3) of the Indian Sale of Goods Act of 1930.
Accessible solutions to the party that has been oppressed
In case of a breach of condition, the party that has been aggrieved has the right to discard the contract. Any damage or repudiation can both be claimed by the party.
In case of breach of the warranty, only momentary compensation can be sought. Here, the party that has been aggrieved cannot cancel the contract but can claim if any damage is done.
Treatment of Violation
A transgression of the condition may well be considered a breach of the warranty.
On the other hand, the condition is unaffected by warranty violations.
Ownership Transfer
Without fulfilling the conditions, the ownership of any product or item cannot be transferred.
Whereas, the ownership of the goods can be transferred even without fulfilling the requirements of a warranty.
Linkage or Connection
A condition is directly related to the agreement's goal.
On the other hand, a warranty is related to the additional or supplementary provision to the contract's goal.

What is a Condition?

Condition refers to a need or occurrence that must occur before the attainment of another activity. A condition is a required requirement of the contract on which the entire deal is based. If a condition of the contract is violated, the victim has the full right to reject the agreement. Section 12(2) of the statute governing the sale of items mentions a condition and its consequent regulations (Indian Sale of Goods Act, 1930). One of the most important things to consider when establishing a selling contract is the title.

Some examples of conditions are selling by sampling, item description requirements, selling by characterization and so on. Any violation of the requirements or terms of the contract leads to the agreement's dissolution. Any breach of the term leads to a breach of the guarantee. In an event of a breach, the contract is cancelled and compensation is insisted upon.

Types of Condition

  1. Expressed Condition: when the terms are clearly defined and both the parties i.e. the selling and the buying parties agree on them, a condition is termed an expressed condition. It indicates that there must be a requirement for contract fulfilment. These requirements are usually required for the new agreement to feature if both parties consent to the stated or articulate a condition. Expressed conditions are those that are explicitly described and relied upon by the partners when the papers are signed.
  2. Implied Condition: Conditions that are not clearly stated, but are required by law to be existent at the time the contract is made are known as the implied condition. There is always an option to waive the implicit requirements. This form of a condition is inferred from the parties, and it exists even if it is not mentioned in the contract. Unless otherwise stipulated, the law adds the preceding implicit conditions into a sale of goods contract:
  3. Sale By Sample: The contract is regarded as a contract for sale by sample if it contains a term stating that the purchase of products is a sale by sample. In such a contract, three implied conditions apply: the majority must relate in reliability to the specimen, the purchaser must be granted a sensible potential to compare the major portion to the specimen and the commodities must be free of any deformity that would deliver them un-merchantable but would not be evident on a qualitative basis.
  4. Condition as to the Title of the Goods: There is an implied condition that the vendor has the right to sell the products that he is marketing, and if the goods are to be sold in the future, i.e. in an agreement to sell, then the vendor will gain the authority to sell at the appropriate moment when the items are handed over from the producer to the consumer.
  5. A Condition Related To Quality Or Fitness: there is generally no such rule. However, in some situations, a condition of reasonable fitness is implied on the part of the vendor for which the consumer wants to purchase the item.
  6. Sale By Description: When items are sold based on the description, the implied requirement is that the majority of the goods delivered must conform to both the sample and the description. If the items match the specimen but not the description, or vice versa, the buyer has the option to cancel the agreement.
  7. Merchantability Condition: this condition means that the goods must be of merchantable quality i.e. they should be in such a reasonable quantity and quality that they are saleable under the descriptions provided.

What is a Warranty?

A warranty is a promise offered by the seller to the consumer regarding the performance of the product, safety, and effectiveness. It is a guarantee given by the seller to the buyer that the information stated about the item is true and accurate. Section 12(3) of the law involving the sale of items mentions the precondition and its consequent regulations (Indian Sale of Goods Act, 1930). A warranty is not the basis but rather, an added condition for the purchase agreement. Often, if a guarantee is given and it turns out to be untrue, and the goods do not work as represented by the vendor, in such a case, solutions such as a refund or exchange are available to customers, as specified in the agreement.

A breach of a warranty has the effect of preventing the offended party from rejecting the entire contract. However, it allows the aggrieved party to seek damages and destruction caused. A warranty is also given for a limited time. In contrast to a violation of a condition, the customer cannot reject the products in a breach of guarantee. If a product fails to work as expected or suffers other damage, the manufacturer or seller will repair or replace it as long as the product is still under a warranty. It is also a stipulation that if a guarantee is ruptured, the aggrieved party has the right to seek restitution and therefore has no authority to reject an agreement made earlier.

Types of Warranty

  1. Express Warranty: An express warranty is mentioned or expressed either verbally or non-verbally. It can take various forms and is essentially a promise that the product will achieve a specific degree of quality and dependability. If the product fails in this aspect, the maker will repair or replace it at no extra cost. Many of these guarantees are listed on the product's package or offered as an alternative.
  2. Implied Warranty: it is a legal term for assurance that a product is suited for the function for which it is designed and marketable. Generally speaking, an implied warranty is the presumption that an item will function properly. It occurs without the necessity for expression or writing. We can again subdivide warranty into two types:
  • Warranty of Fitness
  • Warranty of Merchantability.

Differences Between Condition and Warranty in Points

  • Section 12 (2) of the Indian Sale of Goods Act of 1930 defines the term condition, whereas section 12 (3) defines warranty.
  • A condition may be described as a requirement that must be satisfied before proceeding with another activity. It is a pre-requisite that should be fulfilled before moving on to the proposal. A warranty, on the other hand, is a guarantee issued by the seller on the condition of the product. It is a written guarantee that the item is of the best standard following the information about the product.
  • The breach of a condition results in the violation of a warranty. On the other hand, a violation of a warranty does not affect a condition.
  • In an event of the violation of a condition, the non-breaching party has the right to cancel the contract and pursue legal action. In case of a breach of a warranty, the aggrieved party can only claim the other party for financial damages.
  • Any breach of a condition may result in termination of the contract. However, any breach of a warranty may not result in contract termination.
  • A violation of a condition can be considered a breach of a warranty. Warranty breaches, on the other hand, do not affect a condition.
  • A condition is closely related to the contract's goal. The significance of the condition is related to the engagement, the breach of which results in the cancellation of the specified tender. Warranty, on the other hand, is a supplemental provision related to the area of the agreement. The significance of the warranty lies in the fact that a breach of the warranty will not result in the agreement being revoked.
  • Ownership of any product or commodity cannot be transferred unless the conditions are fulfilled. However, ownership of the product can be transferred even if the warranty criteria are not fulfilled.

Conclusion

Thus, from the above, it is seen that at the time of transaction or buying and selling of goods and commodities, both the seller and the buyer takes into account different conditions and warranty terms regarding various specifications like usage, payment, quantity, and quality, weariness and so on. The pre-requisites can be specified in terms of condition or warranty, as necessary or agreed upon by the vendor and customer. They each have their own set of needs. Every sales contract has some implicit conditions and warranties. Both the buyer and the seller must be aware of these terms and use them as and when necessary to carry out effective trading.

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"Difference Between Condition and Warranty." Diffzy.com, 2022. Sun. 02 Oct. 2022. <https://www.diffzy.com/article/difference-between-condition-and-warranty-782>.



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