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What is a Condition in
Contract of Sale?
A condition is a stipulation which is essential
to the main purpose of the contract. If there is
a breach of condition, the affected party can
treat the contract as repudiated. (repudiate
means to disown or reject.

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A warranty is a stipulation which is collateral
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to the main purpose of the contract. If there is Guidelines to Auditors

a breach of warranty, the affected party can Depreciation –


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Differences between
Condition and Warranty

Condition 1. A condition is a
stipulation which is
essential to the main
purpose of the
contract.

Warranty A warranty is a
stipulation which is
collateral to the main
purpose of the
:
contract.

Condition 2. For the breach of


condition, the affected
party can abandon the
contract of sale.

Warranty For the breach of


warranty, the affected
party can claim
damages only.

Condition 3. A breach of
condition may be
treated as a breach of
warranty. This
happens if the affected
party decides to claim
damages only.

Warranty A breach of warranty


cannot be in any way
treated as breach of
condition.

There can be any number of express conditions


and warranties in a contract of sale. The
implied conditions and warranties are
:
contained in the Sale of Goods Act and these
are given below.

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