Condition and Warranty

May 20, 2023

The stipulation in a contract  could be a condition or a warranty. A clause is a condition if it is fundamental to the agreement, or if it is necessary to achieve the principal goal of the agreement. However, if the clause is a supplementary clause to the contract’s primary objective rather than the latter, it is a warranty.

In case of breach of condition one can even repudiate the contract but in case of breach of warranty one can only seek damages. The condition as per sec 13(1) can either be waived or be elected to be treated as warranty and as per section 13(2) there are certain situations where condition is necessarily treated as warranty once it is treated a warranty, here the contract cannot be repudiated but only damages can be claimed.

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