chpt 3

• Express terms

  Specifically discussed and agreed upon by the contracting parties, can be done orally or in writing
• Implied terms

  Not expressly agreed by the contracting parties but are still part of the contract, can be implied by fact or by law
• Conditions


  A term which is clearly vital to the main purpose of the contract
• Breach of a condition

  Injured party has right to:

  • terminate the contract and claim damages
  • Affirm the contract and claim damages
• Warranties


  A term which is clearly less vital to the main purpose of the contract, breach only allows claim for damages
• Innominate terms


  Depends on whether it is substantially deprived (significant loss)
• Quality of goods under Sale of Goods Act

  • Implied condition that goods are of satisfactory quality if sold by a seller in the course of a business, does not apply in certain cases
• Exclusion or exemption clause

  A term in the contract where one party seeks to limit or totally exclude their legal liability to the other party in the event of a breach
• How courts regulate exclusion clauses

  
  

  1) the clause was part of or included in the contract

  2) the clause was properly interpreted clearly covers the relevant damage

  3) it complies with the Unfair Contract Terms Act (UTCA)
• Exclusion clauses that automatically invalid are those trying to exclude or limit liability for death or personal injury caused by negligence