What distinguishes a warranty from a condition in a contract?

The distinction between a warranty and a condition in a contract primarily revolves around the significance each holds within the terms of the agreement. A warranty is generally considered a lesser term compared to a condition. This means that while a breach of a warranty can give rise to a claim for damages, it does not result in the termination of the entire contract. In contrast, a condition is a fundamental term that, if breached, can lead to significant consequences, including the right to terminate the contract.

The implications of this difference are crucial in contract law. A warranty serves as a assurance regarding certain aspects of the contract, but its breach does not undermine the overall purpose of the agreement. Understanding this hierarchy of terms allows parties to navigate their rights and obligations more effectively, particularly when disputes arise over breaches. Thus, recognizing a warranty as a lesser term is key in distinguishing how each can affect the enforceability and continuation of a contract.