Types of terms

• What are terms?

  terms are the content of a contract which set out what is expected
• The way in which terms are classified is critical in doing what?

  determining the outcome
• what are the 3 types of terms?

  conditions, warranties and innominate terms
• What is the significance of conditions in a contract?

  They are the most important terms which are the root of the contract and if not performed the contract is meaningless
• what happens if conditions are breached?

  The innocent party can repudiate the contract and be free to find an alternative party to contract with or claim damages
• What case is an example of conditions?

  Poussard v Spiers & Pond
• what is the significance of warranties in a contract?

  they are minor terms of the contract; anciliary / secondary to the main purpose of the contract
• What happens if warranties are breached?

  contract can still continue and the innocent party is still bound and can only claim damages
• What case is an example of warranties?

  Bettini v Gye
• What are innominate terms?

  terms which at first cannot be identified as a condition or warranty
• What is the process of deciding what type of term it is?

  Consider the consequence of the breach first and determine how serious it is then the term is classified

  The appropriate remedy will be available
• when will a term be classified as a condition?

  only if repudiation is fair on both sides
• where do innominate terms come from?

  Hong Kong Fir
• What happened in Poussard v Spiers &Pond?

  missing the final rehearsals and the forst 4 performances due to illness was a breach if condition as she had a lead role which was crucial
• What happened in Bettini v gye?

  missing 3 of the 6 rehearsals due to illness was a breach of warranty not a condition as rehearsals were minor to performance
• What happened in Honk Kong Fir?

  ship was 'in every way fitted for ordinary cargo service' but broke down for 18 weeks, the breach was not serious so was classified as a warranty
• In what case part of a cargo was damaged but was classed as a warranty?

  The Hansa Nord
• In what case a 15 days notice was recquired but only a 13 days given was serious breach so was classed as a condition?

  Bunge Corp
• In what case was payment 'of the essence' and D failed to pay on time the 4th occasion?

  Lombard North Central
• How is a term classified as a condition or warranty?

  if it is at the root of the matter
• what is taken into consideration when deciding if a term is a condition or warranty?

  what have the parties labeled the term as

  what is the intention of the parties

  if it is implied form the statute
• What case is an example of whether it is a condition or warranty?

  Mihalis Angelos