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Exercises · Q5

Q.What is a Condition? What is a Warranty? Distinguish between them with examples.

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Condition — a stipulation essential to the main purpose of the contract. If broken, the aggrieved party may repudiate the contract (reject the goods, refuse to proceed) in addition to claiming damages.

Warranty — a stipulation only collateral to the main purpose of the contract. If broken, the aggrieved party can only claim damages; the contract must still be performed.

BasisConditionWarranty
ImportanceEssential to the main purposeCollateral/secondary
Remedy on breachReject goods + damagesDamages only
ExampleA car is specifically described as a '2020 model' but turns out to be a 2018 modelA car is sold with a general assurance of one free service in the first year, which is not honoured

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