CONDITION AND WARRANTIES Every contract is made up of stipulations which are divided into two categories, namely, conditions and warranties. Condition- condition is a stipulation essential to the main purpose of the contract, breach of which give rises to treat the contract repudiated. Eg Warranty- is a stipulation collateral to the main purpose of the contract, breach of which cannot treat the contract repudiated but give right to claim for damages. Eg
Distinction between condition and warranty
It is essential to the main purpose of the contract On breach of condition contract may be repudiated On breach of condition buyer may reject the goods In breach of condition aggrieved party is not bound to perform the contract The buyer may treat the breach each of the conditions as breach of the warranty only It is collateral to the main purpose of contract On breach of warranty contract cannot be repudiated, but only dama