Conditions in a contract such as the identity of parties, the identification of the property, the sale price, deposit, finance and building and pest inspection condition , time and place of settlement form the fundamental basis of the contract. That is they are the most important elements of a contract.
The breach of any of these conditions will normally entitle the innocent party to a right of rescission or termination of the contract.
Terms of the contract are secondary to conditions. They can be terms such as misrepresenting the existence of an installed electrical safety switch or a requirement to remove unsold chattels from a property before settlement.
The breach of a term will normally entitle an innocent party to a claim for damages but not to rescind the contract of terminate the contract.
Warranties are a separate in a contract (apart form statutory warranties pursuant to sections of the Body Corporate and Community Management Act 1997 (Qld) when selling /buying a unit in a Community Titles Scheme) do not traditionally entitle an innocent party to rescind or terminate the contract.
It is therefore important that whether you are a buyer or a seller that you are informed as to what in the contract is a condition (fundamental giving termination rights) or a term (giving rise to claim for damages but not a right to terminate or rescind the contract).
Termination rights essentially discharge the parties from their obligations (apart from those conditions that have already- unconditionally vested-( for example the seller’s right to claim deposit in the event of breach by the buyer) while rescission means that the contract is dissolved as if no contract ever existed.