Conditions And Warranties

Condition
[sec12(2)] - A stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.

A condition is a term (oral or written) which goes directly to the root of the contract', or is so essential to its very nature that if it is broken the innocent party can treat the contract as discharged. That party will not therefore be bound to do anything further under that contract.
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Warranty
[sec12(3)] - A stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated.

A warranty is a term of the contract which is collateral or subsidiary to the main purpose of the contract. It is therefore not so vital as to affect a discharge of the contract. A breach of warranty only entitles the innocent party to an action for damages; he cannot treat the contract as discharged.

Differences between condition and warranty:

Conditions vs. Warranties Case Study

Two cases involving opera singers show the difference between conditions and warranties.

Breach of Condition
In Poussard vs Spiers and Pond, Mrs. Poussard was an opera singer. She agreed to sing in an opera starting on 28th November. However she became ill and was unable to sing till 4th December. The opera company had to hire another singer so that the opera could start on 28th November, and they could only get another singer if they hired her for all the performances of the opera. They did this and refused the services of Mrs. Poussard once she was better. Mrs. Poussard raised a court action to try to make the company pay her. However, the court said that she breached a condition of the contract when she was ill and unable to perform on 28th November. This was a basic term of the contract.

Breach of Warranty
Bettini, an opera singer, agreed to sing in London in a number of theatres beginning on 30th march. He also agreed that he would arrive in London 6 days before the performance to practice. However, he became ill and could arrive only 3 days before the performance. The opera company refused to allow him to sing, saying that he had breached the contract. However, the court said that the part of the agreement about practicing was a warranty not a condition. That meant it was not a basic part of the contract. It was only a subsidiary part.
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