Chapter 30- Status of terms

Question 1

Describe conditions of a contract

Answer 1

• These are such important terms that if breached, the contract is considered void.
• If a condition is breached, the claimant has the right to reject the contract and claim damages

Question 2

Describe warranties of a contract

Answer 2

• These are terms that are important but are not crucial to the essence of the contract
• If they are breached, the claimant can claim for damages for any loss caused by the breach but they cannot terminate the contract all together

Question 3

Describe innominate terms of a contract

Answer 3

• In law, innominate term does not have any specific classification and it lies between conditions and warranties
• if the breach is severe, then the claimant has the right to terminate the entire contract
• if the breach is minor, they have the right to only claim damages

Question 4

Describe a case for a
breach of conditions

Answer 4

Poussard v Spiers and pond:
- the lead singer’s performance was crucial to the production and so was a condition, the producers could therefore terminate her contract

Question 5

Describe a case for a breach of warranties

Answer 5

Bettini v Gye:
The requirement to attend rehearsals was only secondary to the main purpose of the contract

Question 6

Describe a case for a minor breach of an innominate term

Answer 6

The Hong Kong Fir Case
- A ship was in a poor state and was not seaworthy, as a result it broke down. The defendants tried to reject the contract but the claimant sued and said this was not a condition but a warranty.

Question 7

Evaluate the law on innominate terms

Answer 7

• The court needs to evaluate the certainity of contracts to prove they are a condition
• Can lead to an expensive lengthy litigation if parties are confused about the terms in the contract
• It can be difficult to balance certainity with justice
• Modern courts have flexibility and will consider the impact of breaches to prevent unfair contract terminations