A completed agreement is governed by a set of contract terms, including conditions (terms of major importance) and warranties (terms of minor importance). Conditions form the basis of the contract. If a condition is breached, the aggrieved party will have a right to seek damages and/or repudiate the contract. In case of warranty breach, seeking damages is the only legal recourse. Determination of whether a term is a condition or a warranty stems from the intention of the parties, which is determined from the general tenor of the contract and through any statements that the parties make related to the comparative importance of the term in question.
A completed agreement is governed by a set of contract terms, including conditions (terms of major importance) and warranties (terms of minor importance). Conditions form the basis of the contract. If a condition is breached, the aggrieved party will have a right to seek damages and/or repudiate the contract. In case of warranty breach, seeking damages is the only legal recourse. Determination of whether a term is a condition or a warranty stems from the intention of the parties, which is determined from the general tenor of the contract and through any statements that the parties make related to the comparative importance of the term in question.
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