Condition vs Warranty
Companies frequently conduct business transactions with consumers and other firms. In order to conduct transactions in a safe manner it is important to write up a contract for sale of goods which will lay out the terms, conditions, rights, and legal implications that surround the sale. Conditions and warranties are two such components of a sale of goods contract. These components lay out the rights, implications, and terms that apply to the parties to the contract. The article that follows offers a comprehensive explanation of each term and shows how these provisions are similar and different to one another.
Condition
Conditions are terms that need to be fulfilled in order for the contract to go through. These conditions can be either written or oral and will be legally binding. In the event that the conditions set out in the agreement is not met, the party that suffers can terminate the contract, and will not be legally responsible to carry forward the sale. Meeting the set conditions are essential to the contract and, if any of the conditions that are laid out in the contract are breached (there maybe more than one condition), that is regarded as a breach of the entire contract. For example, the company NUI agrees to sell 5000 calculators to YTI Corp. However, the contract of sale includes a condition that states that NUI will inspect the calculators, verify that they are of the quality standard that was promised earlier. In the event that the calculators are defective, NUI can cancel the contract of sale, and YTI will not deliver any calculators to NUI.
Warranty
A warranty is a guarantee that the buyer receives from the seller that all the information provided about the product is true. This could be about the product’s features, functions, uses, or any other claim made about the product in general. There are two types of warranties; the expressed warranty and implied warranty. An expressed warranty is when the producer makes an explicit claim about the product. For example, NUI may claim that the calculator should remain in good working condition up to a year from its date of manufacture. An implicit claim is a claim that is not explicitly made by the seller, but is created by law and warrant that a product will be in good working condition for a reasonable amount of time and will be able to satisfy the purpose for which it was manufactured. In the event that a warranty is breached the party that suffers does not have the right to terminate the contract. Instead, they can claim for damages or any inconveniences that occurred.
What is the difference between Condition and Warranty?
Warranties and conditions are essential to a sale of goods contract to ensure that both parties to the contract are fulfilling the claims or promises that were made in the contract. Conditions are an essential part to the contract, and in the event that conditions are not met, the party that suffers can terminate the entire sales contract. A warranty, on the other hand, is not as essential as the conditions and is a set of claims that the seller makes to the buyer about the products that are being sold. In the event that a warranty is breached, the buyer has the right to claim for damages.
Summary:
Condition vs Warranty
• Warranties and conditions are essential to a sale of goods contract to ensure that both parties to the contract are fulfilling the claims or promises that were made in the contract.
• Conditions are terms that need to be fulfilled in order for the contract to go through.
• A warranty is not as essential as the conditions; it is a guarantee that the buyer receives from the seller that all the information provided about the product is true.
• In the event that conditions are not met, the party that suffers can terminate the entire contract, but in warranty, this does not apply; instead, the buyer has the right to claim for damages.