Condition vs Warranty: Difference and Comparison

Many terms in sales and marketing 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 fulfilment 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. 

Key Takeaways

  1. A condition is a term of a contract that is essential to the agreement, and failure to fulfil it can result in the termination of the contract. At the same time, a warranty is a promise made by the seller about the quality or condition of the product.
  2. A condition is a term that must be fulfilled before any other obligations under the contract can be performed. At the same time, a warranty is a term that assures that the product will meet certain specifications or standards.
  3. Breach of a condition can result in the termination of the contract and entitle the injured party to sue for damages. In contrast, a breach of a warranty entitles the injured party to sue for damages but does not automatically terminate the contract.

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.

Condition vs Warranty

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

The condition is one of the factors directly related to the objective of the contract.

A 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.

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Comparison Table

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 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 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.

condition

What is Warranty?

Warranty is the assurance of the product for its fitness, quality, and performance. The manufacturer or seller provides it to the person purchasing the product, i.e., the buyer.

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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 sale.

A warranty assures the buyer about their purchased products that the product fits in the description provided, all the facts about the goods are true, and the product is in its best condition. In cases of product performance failure 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 quality and performance, warranty related to buyer possession, etc., in case of a breach, and damages can be claimed.

However, the violation of the warranty doesn’t affect the condition and its terms.  

warranty

Main Differences Between Condition and Warranty

  1. Conditions are terms, provisions, and obligations fulfilled by the 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 damages are claimed for the breach of warranty.
  4. The condition is mentioned in Section 12(2), and the 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.
Difference Between Condition and Warranty
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

Last Updated : 13 July, 2023

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29 thoughts on “Condition vs Warranty: Difference and Comparison”

  1. The description of implied conditions and their significance in sales contracts is an eye-opener. This article provides crucial insights for both buyers and sellers.

    Reply
  2. The distinction between expressed and implied conditions provided in the article is particularly helpful in understanding the intricacies of sales contracts.

    Reply
  3. The article provides comprehensive insights into the difference between condition and warranty in sales. Sections like ‘What is Warranty?’ and ‘What is Condition?’ offer detailed clarifications.

    Reply
  4. I have never experienced confusion with sales and marketing terms. However, this article did an excellent job breaking down the differences between conditions and warranties. It is amazing how seemingly small differences have such significant impacts.

    Reply
  5. The comparison table is excellent. It neatly summarizes the distinctions between conditions and warranties. This kind of clarity is essential for navigating sales contracts.

    Reply
  6. The article outlines the distinction and importance of conditions and warranties with great precision. A valuable resource for anyone involved in sales.

    Reply
  7. The section detailing the ‘What is Condition?’ and ‘What is Warranty?’ provides a thorough understanding of these essential terms in sales. It’s an excellent guide for anyone entering into sales contracts.

    Reply
    • The detailed explanations offered in the article are essential for anyone involved in sales and marketing to understand the legal aspects of contracts.

      Reply
  8. The article’s delineation between condition and warranty was very informative. A much-needed resource for anyone involved in sales and marketing.

    Reply
  9. The legal implications of these terms are significant. It’s essential for both buyers and sellers to have a clear understanding of conditions and warranties to avoid disputes.

    Reply

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