classification Flashcards
what are the 3 different classifications of contract terms?
-conditions
-warranties
-innominate terms
what are conditions?
conditions are major terms of a contract, terms that are so important that if they are breached it will defeat the purpose of the contract
what will happen if a condition is breached?
it can be repudiated, which means that the contract is set aside/ends. there can also be damages applied, but the victim will choose
what is the case for a condition?
Poussard v Spiers and Pond
what are warranties?
warranties are minor terms of a contract, where if they are breached it won’t defeat the purpose of the contract
what happens if a warranty is breached?
the contract will continue, but damages can be paid to the victim
what is the case for warranties?
Bettini v Gye
how do courts decide whether the term is a condition or a warranty?
-they go to the root of the contract, which essentially means does it defeat the purpose
-or, a statute may decide whether or not is is a warraty or condition
what is the case for parties themselves specifying whether it is a warranty or condition?
Schuler v Wickman Machine Tools
what does Schuler v Wickman Machine Tools say?
that the parties can specify whether it is a warranty or a condition, however if it is too unreasonable then it won’t be decided by them
what is an innominate term and when will it be used?
-innominate terms are very broad/ambigous terms
-when court cannot decide whether it is a warranty or a condition
-innominate terms can either repudiate the contract or lead to damages
what is the main case for innominate terms?
Hong Kong Fir Shipping
what is the statement made from Hong Kong Fir Shipping?
that “does the breach deprive the party of substantially the whole benefit of the contract”
what are the other 2 cases for innominate terms?
-The Mihalis Angelos/Bunge Corporation
-Cehave v Bremer
