Warranty as a Collateral Stipulation

A warranty is a stipulation in a contract that relates to the quality of goods or services being sold. It is a collateral stipulation because it is not the main purpose of the contract but rather a secondary or additional promise made by the seller to the buyer. If the warranty proves false, the buyer only has a right to claim damages and not to terminate the contract.

Conditions, Guarantees, and Warranties

Conditions are essential terms of a contract that are so fundamental that their breach can result in termination of the contract. Guarantees, on the other hand, are promises made by a third party to the buyer to ensure the performance of the contract. They are not part of the contract itself but rather a separate agreement between the buyer and the guarantor.

Examples of Warranties

There are different types of warranties, including express warranties, implied warranties, and statutory warranties. Express warranties are made by the seller to the buyer and can be in writing or oral. Implied warranties, on the other hand, are not explicitly stated in the contract but are implied by law based on the nature of the transaction.

Statutory warranties, which are also known as consumer guarantees, are set out in legislation and apply to certain goods and services. They include warranties such as the guarantee of acceptable quality, the guarantee of fitness for purpose, and the guarantee of repairs and spare parts.

Conclusion

In conclusion, a warranty is a collateral stipulation that is secondary to the main purpose of the contract. If it proves false, the buyer only has a right to claim damages and not to terminate the contract. It is important for buyers and sellers to understand the different types of warranties and their implications in a contract.