Types of terms

• Conditions


  major term of a contract, a breach allows a party to repudiate and claim damages (Pussard V Spiers)
• Warranty 


  minor term, a breach allows a party to claim damages but not repudiate (Bettini V GYE)
• Innominate terms 


  a term without classification, courts will look at seriousness of breach, the more serious the consequence the more likely a party could repudiate (Hong Kong Fir Shipping V Kawasaki)

  Reardon Smith V Hansen-Tangen, breach of innominate term will allow for damages, to repudiate a party must prove they are 'substantially deprived' of the whole benefit of contract
• How do judges construct terms - express terms


  express term is stated and classified judges will respect that
• How do judges construct terms - terms not mentioned

  terms not mentioned will be implied by common law (business efficacy, previous dealings, custom) or using a statue (CRA 2015) by judges
• How do judges construct terms - party has terms, contract is silent on type


  if a party has terms but the contract is silent on the type of term then judges will decide, they will classify term as innominate
• Terms must be accurately described 


  Schuler V Wickman, here judges may reclassify terms if a party has an unfair advantage and has reasonably classed their terms as conditions