When the sale and purchase of goods takes place, the buyer purchases the goods after the completion of some implied or expressed condition, and against some expressed or implied warranty. The jurisdiction of contracts of sale and purchase is done under The Sales Of Goods Act, 1930, under section 11 to section 17 of which, the concepts of condition and warranty have been discussed.

Condition – It is the stipulation, essential to the main purpose of the contract. Breach of a condition may stand the contract repudiated, on the option of aggrieved party.

Warranty – it is a stipulation, collateral to the main purpose of the contract. A breach of warranty does not allow the aggrieved party to repudiate the contract, but he can claim compensation.

Condition and warranty can be of two types:

1. Expressed: Any condition or warranty that has been conveyed by words, either written or oral is said to be expressed.
2. Implied: Any condition or warranty, that is supposed to be self suggestive in the contract is said to be implied.

Under a general contract of sale – purchase, there are some implied conditions, are such are some implied warranties that form the basis of a valid contract of sale, unless decided otherwise by the parties to the contract.

Conditions

• Condition as to title (sec.14 (a)) – A very basic yet important condition in a contract of sale is that the seller must have the authority to sell the goods at the time of performance of contract.
• Correspondence to description (sec.15) – When the buyer enters into a contract to purchase the goods on the bases of description provided by the seller, then it is an implied condition on behalf of the buyer that the actual goods correspond with the description.
• Resemblance to the sample (sec.17) – When the goods are bought in bulk, they are purchased on the bases of the sample provided by the seller. In this case, requisite condition on behalf of the buyer is that the goods sold must be homogeneous to the sample provided and must be free from any such defect that makes them unmerchantable, which couldn’t be apparent during the reasonable inspection in time provided to the buyer for the inspection of the bulk quantity. Whereas, condition on behalf of the seller is that once reasonable time has been provided to the buyer for the inspection of the bulk quantity, the buyer can’t seek for compensation on grounds of any defect, unless in case of some such defect that couldn’t be apparent on reasonable examination.
• Assurance to quality and fitness (sec.16 (1)&(2)) - When the buyer expresses or implicts the seller his relience on the seller's judgement for the quality of goods that are dealt by seller under normal business opeations, then there is an implied condition thaht the goods shall be of reasonable quality, fit for the purpose.

Warranty

• Possession of goods (sec.14 (b)) ­ – On purchase of goods, the buyer seeks warranty from the seller that he shall have uninterrupted possession of the goods and is free to enjoy such possession.
• No hidden liability (sec.14(c)) – There is an implied warranty on behalf of the seller that the goods of matter are free from any undeclared encumbrance or charges in favour of third party, at the time when the contract is made.
• Disclosure of essential information – The buyer, while purchasing, believes that all the essential information (e.g. requirement of special temperature for maintenance) regarding the sold goods have been disclosed by the seller. In case, absence of such information to the buyer causes any loss, the seller must be held liable.