types of terms

• define repudiation 


  cancel/end a contract due to refusal by party to perform duty of obligation
• what gives one the right to repudiate a contract?

  breach of conditions of contract
• what 3 types of terms are there?

  conditions

  warranties

  innominate terms
• define conditions 


  term that goes to the very core of a contract and is essential to purpose of contract
• if term is central to contract it is breach of contract (contract is destroyed) 


  Poussard v Spiers and Pond
• a term is always a condition in commercial contracts

  The Mihalis Angelos
• why is a term always a condition in commercial contracts?

  to maintain certainty, as it has a knock on effect on other businesses
• define a warranty


  a minor term in a contract, breach won't end the contract since main purpose can be performed
• if term is not relating to main purpose of contract then it is a warranty

  Bettini v Gye
• what can you claim for breach of warranty?

  damages only
• define an innominate term

  terms without status
• how do courts deal with innominate terms?

  must decide which category it falls into (condition or warranty)
• how is an innominate term's category decided?

  depends on consequence of breach of term
• if term doesnt substantially deprive D of whole benefit, then it is a warranty

  Hong Kong Fir Shipping v Kawasaki
• despite being named as condition, courts can decide it is a warranty if breach isn't so big as to end contract

  Schuler v Wickman
• what is an advantage of conditions?

  clear distinction between conditions and warranties
• what is a disadvantage of conditions?

  rigidity as terms are always conditions in commercial contracts
• what can be concluded about law on conditions?

  clear and distinct but very rigid and limits freedom of contract

  courts should make them more flexible to allow contract autonomy
• what is an advantage of innominate terms?

  it is flexible as its status is decided based on its consequences in each particular case
• what is a disadvantage of innominate terms?

  creates uncertainty and confusion as courts have most decision making power

  hard to predict
• what can be concluded about innominate terms?

  parliament should produce a clear and definitive guide to deciding status of innominate terms