By default, the iPhone can be in the following states:
Perfect. This is exactly the case that we talked about above (you used protective glass and covers). The iPhone in perfect condition has no chips, scratches or scuffs.
Good. There are slight visual traces of use: minor scratches and abrasions. The screen is undamaged.
Damaged. In such an iPhone, the flaws are more noticeable: chips, cracks, dents, and certain functions may not work.