classification of terms

• Conditions are fundamental terms in a contract; breaching a condition makes the whole contract meaningless, allowing for claims for damages or repudiation
• Example: Poussard v Spears - performing at an open night was a fundamental term, and not doing so due to illness was a breach of contract
• Warranties are minor/secondary terms of a contract; breaching a warranty allows for suing for damages but doesn't cancel the contract
• Example: Bettini v Gye - missing rehearsals as an opera singer was not fundamental to the contract
• Innominate terms are not classified as conditional or warranty until breached; the court assesses the impact of the breach to determine the classification
• Example: Hong Kong Shipping v Kawasaki - breach related to 'seaworthiness' was initially innominate until impact assessed; later classified as a warranty
• Express terms are statements made before a contract; implied terms are those never mentioned or discussed
• Implied terms by fact exist when not explicitly stated; implied by statute (CRA 2015) applies to supply of goods or services
• Exclusion clauses limit liability; the classification of terms depends on how serious they are