Breach and Termination Flashcards
Example of breach of express condition
Arcos Ltd v Ronaasen
Agreement that timbers = 0.5 inches thick, some arrive 0.56. Can terminate - breach of condition
Example of implied condition
Milihalis Angelos
ship ‘now trading and expected ready to load about July 1st’.
Classified as condition due to trade usage - found in case law. Differed trade usage conditions for different contracts
Using the word ‘condition’ does not always mean that the term is a condition
Schuler v Wickman Machine Tools Sale Ltd - first term could not be a condition in legal sense due to second clause.
Rice v Great Yarmouth BC - objective test as to whether it was a condition
Express innominate terms
If the breach deprives the injured party of substantially the whole benefit from the contract, termination is allowed
Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd
Examples of strict liability
can escape these liabilities through an excuse agreed by both parties or doctrine of frustration
Universal Corp v Five Ways Properties Ltd - failed to pay due to bank being prohibited from making payment
Steel v State Line SS Co - duty to charterer that ship = seaworthy
Contractual liability could be fault-based (s.13 SOGSA). But if reasonable care and skill is taken and there is still defective performance, no breach
Wilson v Best Travel Ltd
Breach does not automatically terminate the contract. Injured party can decide whether they want to terminate or affirm contract.
White and Carter (Councils) Ltd v McGregor
- anticipatory breach
Termination has prospective, not retrospective effect - i.e. does not release party from obligations arising before the termination
The Dominique
An anticipatory breach takes place before the date of performance - innocent party can bring a claim immediately they do not need to wait until the actual breach occurs
Hochester v De La Tour
time of delivery is an implied condition in a commodities sale contract,
Bunge Corporation v Tradax Export SA
