part 3

• What determines the remedies available if a term in a contract is broken?

  The relative significance of each term in a contract
• What are the three main types of terms in a contract?

  • Conditions
  • Warranties
  • Innominate terms
• What are conditions in a contract?

  Terms that contain the fundamental obligation under the contract
• When can a term be classified as a condition?

  When established by statute, precedent, intention of the parties, or the court
• Which statute relates to conditions in contracts regarding the supply of goods?

  Supply of Goods and Services Act 1979
• What does the case Mihalis Angelos (1971) illustrate about conditions?

  It shows that a term regarding time for performance can be a condition
• What was the significance of the 'expected readiness clause' in Mihalis Angelos?

  It was deemed a condition of the contract
• How did the case Lombard North Central v Butterworth (1987) define conditions?

  It defined conditions based on the intention of the parties regarding payment timing
• What does the mere use of the word "condition" imply in a contract?

  It is not conclusive evidence that a term is a condition
• What does a breach of a condition entitle the aggrieved party to do?

  They can sue for damages and repudiate any further liability
• What was the outcome of Poussard v Spiers (1876)?

  Poussard was found to be in breach of a condition of the contract
• Why was Poussard's absence significant in her contract with Spiers?

  Her absence went to the root of the matter
• What are warranties in a contract?

  Terms that are subordinate to the main purpose of the contract
• What was the outcome of Bettini v Gye (1876)?

  Bettini was entitled to damages for wrongful termination of his contract
• What does a breach of warranty entitle the aggrieved party to do?

  They can sue for damages only
• What are innominate terms in a contract?

  • Terms where it is unclear if a condition or warranty has been broken
  • Legal consequences depend on the seriousness of the breach
• What was the significance of the case Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen & Kaisha Ltd (1962)?

  It established that some terms cannot be clearly defined as conditions or warranties before a breach
• What did Lord Diplock state regarding the seaworthiness term in the Hong Kong Fir case?

  He emphasized looking at the consequences of the breach rather than labeling the term
• How do the consequences of a breach differ for innominate terms compared to conditions and warranties?

  The consequences depend on the seriousness of the breach for innominate terms
• What are the key points regarding the classification of terms in contracts?

  • Conditions: Fundamental obligations; breach allows for damages and repudiation
  • Warranties: Subordinate terms; breach allows for damages only
  • Innominate Terms: Consequences depend on the seriousness of the breach