What is the difference between `Error` and `Exception`?

The key difference between Error and Exception is in their intended use and handling:

• Error: Represents serious issues that typically cannot be recovered from, such as OutOfMemoryError. These are not meant to be caught or handled by applications.
• Exception: Represents conditions that can be caught and handled by the application, such as IOException or SQLException. Exceptions are further divided into checked (must be declared or caught) and unchecked (runtime exceptions).

In short, use Exception for recoverable issues and Error for severe issues that should not be handled.