Types of terms

• Conditions

  • major term which is vital to main purpose
  • a breach of this will entitle the injured party to cancel the contract and claim damages
• Warranty

  • less important
  • only gives the injured party the right to claim damages, they cannot cancel the contract
• Poussard v Spiers 


  • breach of condition
  • failure to fulfill the condition of her contract lead the producers to be able to cancel it
• Bettini v Gye 


  • breach of warranty
  • failure to show up to rehearsals was only a breach of warranty and therefore contract could not be cancelled
• Innominate (intermediate) terms

  • when its difficult to decide condition/warranty
  • just look at the effect of the breach without labelling
  • Hong Kong Fir Shipping Co v Kawasaki Kisen