Classification of Terms Flashcards
What are terms of a contract?
Specific obligations or rights of parties when are bound by a contract
What are the types of a term?
Condition
Warranty
Innominate term
What is a condition?
An important term which a failure to perform the obligation would ruin the purpose of the contract itself
What was held in Poussard v Spiers and Pond?
Her presence was a condition and so when she did not attend she had broken her contract
What is repudiation?
A party can bring the contract to an end prematurely if a condition is not fulfilled
What is a warranty?
A minor term where in breach damages can be claimed but the contract cannot end
What was held in Bettini v Gye?
Not turning up to rehearsal was a breach of warranty and so the contract could not be repudiated
What is an innominate term?
A term that is not a condition or a warranty and its breach depends on its consequence
What was held in Hong Kong Shipping?
A breach of warranty and so only damages could be awarded
What was stated by in Grand China Logistics v Spar Shipping?
“A term is innominate unless it is a condition or a warranty”
What is a representation?
A statement or opinion of fact which is unlikely to form part of a contract (also called a ‘trade puff’)
What are factors that help to decide if a representation is a term or not?
(Think Negligent misstatement in Caparo v Dickman)
- Importance
- Written
- Special skill or expertise
- Time lag between statement and contract
What was held in Oscar Chess v Williams?
The car being a ‘1948’ model was a representation rather than a term
What was held in Dick Bentley v Harold Smith Motors?
The car having done ‘100,000 miles’ instead of the ‘20,000’ stated was a term
What was held in Routeldge v Mackay?
The statement was a representation as the date was not written in the contract and there was a long time gap
