contract terms

• the terms of the contract are what the parties to the contract have agreed. They can either be;

  • express

  or

  • implied
• types of terms:

  • condition
  • warranty
  • innominate term
• condition- a term in a contract that is central to the contract, breach of which may allow the contract to be repudiated (ending of a contract).

  It goes to the root of the contract - Poussard V Spiers and Pond
• warranty - is a minor term in the contract, breach of which does not end the contract but allows a claim for damages only.

  Bettini V Gye
• innominate term- is a term in a contract that isn't a condition or a warranty, whether it is considered as a warranty or condition depends on the severity of the consequences of the breach.

  Hong Kong Fir Shipping V Kawasaki ltd
• is a statement a term or a mere representation?

  court will consider;

  • importance attached to the representation
  • skill of person making the statement
  • time lag between the statement and the contract
  • whether there is a written contract
• importance attached to representation: Couchman V Hill

  (pregnant heffer)
• skill of person making statement:

  (Oscar chess V Williams)- private seller of a car, wasn't a term.

  (Dick Bentley V Harold Smith Motors) - car dealer, was a term.
• time lag between making the statement and making the contract: Routletdge V Mackay
• whether there is a written contract: Routledge V Mackay