Define and distinguish ‘condition’ and ‘warranty’. Discuss in detail

In mercantile law, particularly in the law of contracts, the terms “condition” and “warranty” have specific legal meanings. Both terms refer to the promises made by parties within a contract, particularly in contracts for the sale of goods, but they differ in their significance and consequences when breached.

### Definition of ‘Condition’

A "condition" in a contract is a stipulation or term that is essential to the main purpose of the contract. The breach of a condition gives the aggrieved party the right to terminate the contract and claim damages. In essence, a condition is a significant and fundamental term, and the non-fulfillment of it undermines the very foundation of the agreement between the parties.

For instance, in the context of a sale of goods, a condition might be that the goods sold must be of a particular quality, type, or description. If the goods do not meet the required condition, the buyer can rescind the contract (cancel the contract) and claim damages for any loss suffered. The importance of a condition lies in the fact that if it is not fulfilled, the affected party has the right to treat the contract as voidable.

The Indian Sale of Goods Act, 1930, defines a condition under Section 12(2), which states that a "condition" is a stipulation essential to the main purpose of the contract. If a condition is not fulfilled, it gives the aggrieved party the right to either terminate the contract or claim damages.

### Definition of ‘Warranty’

A "warranty," on the other hand, is a secondary or collateral term of the contract. A warranty does not go to the root of the contract, and the breach of a warranty does not entitle the aggrieved party to terminate the contract. Instead, the aggrieved party may only claim damages for the loss suffered due to the breach of the warranty. 

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