Warranty in Contract Law

In contract law, a warranty is a term or provision in a contract that is not essential to the performance of the contract, but is a secondary or subsidiary obligation that is collateral to the main purpose of the contract. Unlike a condition, a breach of warranty does not give the innocent party the right to terminate the contract, but it does give the innocent party the right to claim damages for any losses suffered as a result of the breach.

A warranty is essentially a promise made by one party to the other regarding a particular aspect of the contract. For example, in a contract for the sale of goods, a warranty may be a promise by the seller that the goods will be free from defects for a certain period of time. If the goods are later found to have defects, the buyer may be able to claim damages for any losses suffered as a result of the breach of warranty, but they cannot terminate the contract.

The distinction between a condition and a warranty is important in contract law because it affects the remedies available to the parties in case of a breach. If a term is classified as a condition, the innocent party has the right to terminate the contract and claim damages. If it is classified as a warranty, the innocent party can only claim damages.

It is important to note that the distinction between a condition and a warranty is not always clear-cut, and can depend on the specific circumstances of each case. In some cases, a term may be characterised as a warranty in one contract, but as a condition in another contract. The intention of the parties and the nature of the term itself will be taken into consideration by the court when determining whether a term is a condition or a warranty.