What is the difference between conditions and warranties? Why do we need to distingusih between the two?
Conditions and warranties a key areas that govern the broader terms of the contract. These components help to establish where and how breaches may occur, and which remedies are available for a plaintiff to pursue. In order to determine what the terms are, another determination must be made as to what the parties have expressly agreed to, either orally or in writing. Terms can be either express or implied.
Express terms are agreed by both parties either orally or in writing. When the agreement is made strictly via word of mouth, there must be a determination on validity of the evidence given as to what was said and agreed. For this reason, business contracts are usually made in writing. When contracts are made it is easy to discover the ...view middle of the document...
Because of this, certain exceptions to this rule have been established. As an example, in the case Quickmaid Rental Services Ltd. v Reece (1970) the plaintiff persuaded Reece to install a v ending machine at his garage. The salesman promissed not to install any similar machine in the immediate vicinity. Reece signed a written contract for the installation of the machine. The salesman's promise was not included in the written document. Subsequently, another salesman fro mthe company installed anothermachine nearby. Reece refused to pay any further instalments. In this case, the oral statement was held to be a term of the contract, consequently the company was in breach of the agreement, and Reece's refusal to pay was justified.
Contrastly, a contract may contain terms implied by custom or statute. Customs, industry trends and historic precedents lead to implied terms as was seen in the case of British Crane Hire Corporation Ltd.v Ipswich Plant Hire Ltd (1974). In this case it was held that although a contract had not been signed prior to a major incident, damaging the plaintiff's property (therefore agreements between the parties were not met), because the contract due to be signed , and the written contract was customary for rentals of this type, both parties were aware of the conditions to be found in the contract.
Over long periods of time, certain implied terms have been incorporated into special types of contracts by trade and customary usage. One of the most common example is the Sale of Goods Act 1979, which implies terms into contracts for the sale of goods.
The terms of a contract are generally divided into conditions and warranties. A condition is an important term, which forms the very heart of a contract. A warranty on the other hand, tends to be less importants, and moreless ancilliary to the the main part of the contract. In a nutshell,
The difference between the two become extremely important when examing the consequences of a breach of a condition or a warrranty.