When two parties enter into a contract of sale, they set specific conditions that will affect the entire agreement. If these terms are not met, the party who is not at fault may reject the agreement and seek compensation for the damages he has experienced. Similar to condition, a warranty is also provided by the seller to the customer in the event that the purchased item has flaws and has to be replaced or fixed. In this case, only damages may be demanded; the contract cannot be rescinded. The definition of the terms condition and warranty, how they derive their validity in light of The Sale of Goods Act, 1930, and how a condition turns into a warranty will all be studied in this research paper.