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Conditions and warranties?
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Conditions and warranties?
Condition
1. A condition is a stipulation which is essential to the main purpose of the contract.
2. For the breach of condition, the affected party can abandon the contract of sale.
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 warranty is a stipulation which is collateral to the main purpose of the contract.
For the breach of warranty, the affected party can claim damages only.
A breach of warranty cannot be in any way treated as breach of condition.
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Conditions and warranties?
Understanding Conditions and Warranties
In the realm of contract law, particularly in the sale of goods, conditions and warranties serve as crucial concepts that define the obligations of parties involved.
What are Conditions?
Conditions are fundamental stipulations in a contract that, if breached, allow the aggrieved party to terminate the contract and seek damages. They are critical to the performance of the contract. Here are key points about conditions:
  • Essential Terms: Conditions pertain to the core aspects of the agreement.
  • Types: There are conditions precedent (must be fulfilled before contract performance) and conditions subsequent (terminate the contract if they occur).
  • Example: A car must be delivered in working condition; failing this is a breach of condition.


What are Warranties?
Warranties are less critical terms in a contract. Breaching a warranty does not allow for contract termination but may lead to claims for damages. Key points about warranties include:
  • Non-Essential Terms: Warranties relate to secondary aspects of the contract.
  • Remedies: If breached, the party may seek damages but must continue with the contract.
  • Example: A product's color match to a sample; if it differs, it’s a breach of warranty.


Conclusion
Understanding the distinction between conditions and warranties is vital for both parties in a contract. Knowing which term applies can significantly impact the remedies available in the event of a breach, guiding parties toward informed decisions in their contractual obligations.
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Conditions and warranties?
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Conditions and warranties? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Conditions and warranties? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Conditions and warranties?.
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