What is the difference between a condition and a warranty in a contract?
Answer and explanation
Correct answer: D. Breach of a condition allows the innocent party to terminate and claim damages
- Step 1: Terms are classified by importance.
- Step 2: Conditions go to the root of the contract; warranties are minor terms.
Answer
Breach of a condition allows the innocent party to terminate and claim damages.
Why not the others: This reverses the two. Breach of a warranty never gives the right to terminate, and damages are available for both. Neither term has to be in writing.
Practise more The impact of civil law on business and professional services.
Free questions with an explanation for every one, and full timed ICAEW ACA Certificate Level mock tests.
More The impact of civil law on business and professional services questions
- A shop displays a jacket in its window with a price tag of £80. Legally, what is the display?
- A seller writes to a buyer: 'If I hear nothing from you by Friday, I will assume you accept my offer.' The buyer does not reply. Is there a…
- Anna cleaned Ben's office for free. After she finished, Ben promised to pay her £500. Is the promise enforceable as a contract?
- A seller tells a buyer that a second-hand car 'has done 20,000 miles', which the seller knows is untrue because it has done 80,000. The buye…
- Which exclusion of liability is void under the Unfair Contract Terms Act 1977?
- A builder agrees to complete a job for the client at a price of £50,000 but abandons it. The client pays £58,000 to another builder to finis…