Difference Between Condition and Warranty (With Table)

There are many terms in sales and marketing which are seen every day by people and are used by them. Not everyone knows the exact meaning of terms or how to differentiate them. Instead, they end up confusing themselves with the terms. On a daily basis, the world encounters a transaction worth millions in the sales division. The sale of any commodity needs special attention and fulfillment of many requirements. Some common terms which come across while buying or selling a product are MRP (Maximum retail price), Conditions, Included taxes, Warranty, Expiry date, etc. 

Condition vs Warranty

The difference between Condition and Warranty is that condition can be described as a fundamental requirement for sale while the warranty is a supplementary requirement. A condition smoothens the trade process between the buyer and the seller as it imposes the terms to be fulfilled before entering the contract of sale while the warranty assures the performance and quality of the product.

The condition can be defined as an arrangement that is present at all times of sale of the commodity. It is one of the fundamental or necessary requirements for the contract of sale or sale of a commodity. The condition is one of the factors directly related to the objective of the contract.

Warranty is a kind of written guarantee provided by the seller or the commodity manufacturer to the person buying the commodity stating that the seller or manufacturer will repair or replace the product if required. Warranty on a product is provided for a specific amount of time, starting from the date of purchase of the product.

Comparison Table Between Condition and Warranty

Parameters of ComparisonConditionWarranty
MeaningThe condition can be described as a requirement necessary to be filled out in order to perform another action.It is a written assurance that is provided by the manufacturer to the person buying the product, stating that the product is in its true and best state with respect to the description of the product.
Legal informationMentioned in Section 12(2) of the Indian Sale of Goods Act, 1930.Mentioned in Section 12(3) of the Indian Sale of Goods Act, 1930.
RequirementA fundamental requirement for sale contractAdditional requirement for sale contract
RelationshipAssociated directly with the contract objective.Additional or subsidiary provision to the contract objective.
Breach conditionContract termination.Damages can be claimed.
ViolationCondition violation also violates the warranty.Warranty violation does not affect the condition.

What is Condition?

Conditions are terms, provisions, and obligations which are needed to be fulfilled by the seller and buyer to enter into a contract of sale. The condition and its implication rules are mentioned in Section 12(2) of the act governing the sale of products (Indian Sale of Goods Act, 1930). The conditions are one of the major objectives to be taken care of while making a contract of sale.

In a contract of sale, there are mainly two types of conditions: expressed conditions and implied conditions. The terms, when clearly defined and are agreed by both parties, i.e., buyer and seller, are known as expressed conditions. Implied conditions, on the other hand, are conditions that are not necessarily provided but are always present in terms of the legal provision of the contract of sale. There is always a provision for waiving off the implied conditions.

Some of the basic examples of the implied conditions are sale by sample, conditions regarding the title of the products, sale by description, etc. Any kind of breach in the conditions or any terms of conditions results in the termination of the contract. Any kind of violation in the conditions results in violations of the warranty. In case of a breach, the contract gets terminated, and the damages are also claimed.

What is Warranty?

Warranty is the assurance of the product for its fitness, quality, and performance. It is provided by the manufacturer or seller to the person purchasing the product, i.e., the buyer. The condition and its implication rules are mentioned in Section 12(3) of the act governing the sale of products (Indian Sale of Goods Act, 1930). Warranty is not a fundamental requirement but an additional requirement for the contract of the sale.

A warranty assures the buyer about their purchased products that the product fits in the description provided and all the facts about the goods are true, and the product is in its best condition. In cases of the failure of product performance or any other damage, the manufacturer or seller repairs or replaces the product, provided that the product is in the warranty period.

A warranty is given for a specific period of time. Warranty can be provided based on the sale type such as warranty as to quality and performance, warranty relates to possession of a buyer, etc. in case of a breach, damages can be claimed. However, the violation of the warranty doesn’t affect the condition and its terms.  

Main Differences Between Condition and Warranty

  1. Conditions are terms, provisions, and obligations fulfilled by seller and buyer while entering a contract of sale, while a warranty is the assurance of the product for its fitness, quality, and performance.
  2. Condition is directly related to the contract objective, while the warranty is not directly related.
  3. In case of breach of conditions, the contract is terminated, while in case of breach of warranty, damages are claimed for the breach.
  4. The condition is mentioned in Section 12(2) and warranty in Section 12(3) of the act governing the sale of products (Indian Sale of Goods Act, 1930).
  5. Condition violation results in warranty violation, but warranty violation doesn’t affect the condition.

Conclusion

While entering into a contract, all the parties involved must fulfill all the terms and conditions as per the requirement and legal provisions. There are always requirements related to the quality of product, the quantity of product, product performance, delivery, offers, etc. They can be listed in conditions or in terms of warranty as required or agreed by the seller and buyer. Both of them have their special requirements. The implied conditions and warranty is dealt with in accordance with the Principle of Caveat Emptor. Conditions and warranties are in place to offer a smooth and effective trade between people.

References

  1. https://heinonline.org/HOL/LandingPage?handle=hein.journals/modlr15&div=36&id=&page=
  2. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=847526
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