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CA Foundation Exam June 2023 » CA Foundation Study Material » Business Laws » Conditions and Warranties
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Conditions and Warranties

There is a significant difference between condition and warranty. Let us know the different parameters for comparison between condition and warranty in this article.

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When you purchase, you expect the product to be of good quality and meet the advertised standards. Most times, this is the case. But what happens when the product isn’t as described or doesn’t work? It is where conditions and warranties come in. In this article, we’ll discuss the difference between condition and warranty and how they protect you as a consumer.

What are Conditions?

Conditions are a set of terms and conditions that must meet for you to receive the warranty benefits. These conditions can vary from one company to another, but often include things like registering the product or using it only for personal use. If you don’t meet these conditions, the warranty may not be valid.

What are Warranties?

Warranties are promises made by a seller to customers that if something goes wrong with their product, it will be repaired or replaced at no cost. These warranties usually come in two forms: express and implied. An implied warranty is an unwritten guarantee of a product’s quality that arises out of law rather than a contract. An express warranty has explicitly been agreed upon between parties during negotiations (e.g., when purchasing goods). Express warranties can also come from advertisements such as “lifetime guarantee.” If you don’t meet these conditions, the warranty may not be valid.

Why are Conditions and Warranties used?

Conditions ensure your rights as a consumer while protecting businesses against false claims or abuse of the warranty system. Warranties, on the other hand, are used to ensure that products meet a certain level of quality before they’re sold. This is done to prevent faulty products from being brought to market and reduce the number of returns and complaints made by consumers.

Differences between Condition and Warranty

Parameters of Difference between Condition And Warranty

Conditions 

Warranties

Meaning

Conditions must be met for you to receive benefits provided by the warranties

Warranties are a promise made by sellers while conditions are terms and conditions that must be agreed upon before purchasing goods or services from them (e.g. registering products)

Legal Information

The condition states the specific terms and conditions that must be satisfied for you to benefit from it

These circumstances may differ based on business, but they usually involve things like registering the product or using it only for personal use

If you don’t meet these standards, the warranty may not be effective

Warranties, on the other hand, arise out of law and are promises made by sellers to customers that if something goes wrong with their product, it will be repaired or replaced at no cost

Purpose

The purpose of the conditions is to ensure your rights as a consumer while protecting businesses against false claims or abuse of the warranty system

Warranties, on the other hand, are used to ensure that products meet a certain level of quality before they’re sold

This is done to prevent faulty products from being brought to market and reduce the number of returns and complaints made by consumers

Violation

A violation of conditions would be not meeting the set terms and conditions to receive warranty benefits

A violation of warranties is selling a product that doesn’t meet the quality standards agreed upon by both parties

Breach Condition

A breach of condition would not meet the terms and conditions to receive warranty benefits

A breach of warranties would be selling a product that doesn’t meet the quality standards agreed upon by both parties

Relationship

Conditions, a necessary part of any warranty, set out the terms and conditions that meet for you to receive the benefits of the warranty 

If you don’t meet these conditions, the warranty may not be valid

Warranties, on the other hand, are promises made by sellers to customers that if something goes wrong with their product, it will be repaired or replaced at no cost

Condition and Warranty in Contract Law

A condition is a term of a contract that must be satisfied for the contract to be valid. For example, for a buyer to purchase a car from a seller, the car must meet certain conditions such as being free of any major defects. If the car has any major defects, then the sale would not go through and the buyer would get their money back.

A warranty is a promise by one party to another party that something will happen or that a particular result will occur. For example, if you buy an iPhone from Apple, they may offer a warranty that states if your phone screen cracks within the first year of ownership, Apple will replace it for free. This is a type of assurance given by Apple that they stand behind their product’s quality.

If the condition is not satisfied by either buyer or seller, it can be remedied. This means that one party has to pay for any damages caused due to a breach of contract (i.e. if there were defects on the car which were not disclosed at the time of sale).

The warranty would only cover minor issues such as a cracked screen but anything beyond that would need condition and warranty in contract law.

Condition and Warranty in Insurance

A condition is a term of an insurance policy that must be satisfied for the contract to be valid. For example, if you have car insurance but don’t drive your vehicle at all during the year then it would not make sense to pay premiums each month because there’s no risk involved with driving around town without any accidents occurring! The condition might say something like this: “You agree not to use this policy unless necessary.” It’s important when choosing an insurer to make sure they include conditions such as these before signing up! The warranty protects minor issues like cracked screens or dents but anything beyond that needs Conditioning or Warranty clauses within their policies.

The law of conditions and warranties in contracts governs the enforceability of these clauses. It is important to be aware of your rights and remedies if a condition or warranty is not met.

Conclusion

If you’re looking to purchase a product with a warranty, make sure you read over the conditions carefully first. This will ensure that you know what is required of you to receive benefits from the warranty. Failing to meet the conditions could result in a breach of condition, which would invalidate the warranty.

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