Explain and Distinguish Between a Condition and a Warranty

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The Answer is The distinction of terms 'warranty' and 'condition' is important when establishing whether a statement is a term of the contract, because of the remedy available to the injured party, depending on whether a condition or warranty was breached. Thus, if it is established that a statement is a term, it must then be whether it is a:

Condition: A vital term which goes to the root of the contract and allows the injured party the option of rescission and/or damages (Poussard v Spiers & Bond (1876)); or a

Warranty: A term of lesser importance that allows the injured party only to recover damages (Bettini v Gye (1876)).

Essentially, a condition is a vital term which goes to the root or heart of the contract and which, if broken, entitles the injured party to (generally) rescind the contract and/or seek damages. A warranty is subsidiary to the main purpose of a contract and is not really the substance of the contract. It is more a promise of a minor nature or collateral to the main purpose of the contract and only entitled the injured party to claim for damages.

Explain and Distinguish Between a Condition and a Warranty

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