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Updated April 13, 2012
Major terms in an agreement. Conditions are the basis of any agreement, and if one of them fails or is broken, this is considered a material breach. If one party breaches a condition of the contract, the other party's obligations are "discharged," meaning that party is not obligated to perform under the contract. Conditions are in contrast to warranties, the other type of agreement term, which are less important. If one party breaches a warranty under a contract, the nonbreaching party is still obligated to perform its obligations under the contract, but the nonbreaching party may be able to recover damages.
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