What is the primary difference between a condition and a warranty in a contract?

The primary difference between a condition and a warranty in a contract lies in the significance of their fulfillment for the overall validity of the agreement. A condition is indeed fundamental; its fulfillment is essential for the contract to be performed or for one party to be obliged to fulfill its obligations. If a condition is not met, the innocent party typically has the right to terminate the contract and seek damages.

In contrast, a warranty is less critical to the contract's overall purpose. It may cover aspects of the agreement that, if breached, do not permit the aggrieved party to terminate the contract but instead allow them to claim damages. Therefore, while both conditions and warranties play roles in a contract, the condition is the pivotal element that supports the contract's validity and execution. This distinction is why the correct answer emphasizes the essential nature of the condition.