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A/C Problem on 94 E34

During this last heat wave in the SF Bay Area, my A/C decided to go
out on me.  This is the third time this has happened and the previous
two times, the A/C was simply recharged.  This time, however, I wasn't
going to walk away from the dealer with a simple recharge only to have
it happen again in a few months.  The dealer did some poking and discovered
a leaking condenser and a new one was ordered promptly.  My question is
what is the difference between a condenser and a compressor?

Also, my dealer informed me that the A/C system needs to be recharged on
a yearly basis to keep it in shape.  Is this true?  My 1989 Nissan 240SX
blows cold air even after seven years without a single recharge.  Do the
newer (CFC-free) A/C units require this kind of maintenance?

Deepak