classification of terms

Question 1

3 types of term clasifications

Answer 1

conditions
warranties
innominate

Question 2

what is a condition

Answer 2

an essential term of the contract
right to damages and can be relived of duties under contract
Arcos v Ronaasen- thickness of barrels was a conditon so terminated contract

Question 3

what is a warranty

Answer 3

a lesser, subsidiary term of a contract
can only claim damages for a breach

Question 4

how do the courts decide between a condition or warranty

Answer 4

they look for the parties intention objectively
bentsen v taylor, sons & co- boat didnt sailing from port so timings now wrong, condition of contract as was fundemental

Question 5

innominate terms

Answer 5

an intermediate term where a breach will result in a claim for damages and possibly the right to terminate, depending on the consequences of the breach

Question 6

leading case for innominate terms

Answer 6

Hong Kong Fir shipping v Kawasaki Kisen Kaisha- ship was chartered for 24 months, ship had to be repaired for 5 weeks during the journey and 15 weeks in the dock due to bad staff, seaworthiness was not a condition but an innominate term as whole benefit was not lost

Question 7

test for conditions

Answer 7

will the breach deprive the party not at fault of the whole benefit it was intended to gain- Diplock

Question 8

benefits of the innominate term

Answer 8

1. mitigates the harshness of terms being classified as conditions
2. allows terminations to occur for trivial breaches
   arcos v ronaasen- minor breach of thickness of barrels, term was a condition and contract was terminated

Question 9

benefits of conditions

Answer 9

Bungee corporation v tradax export SA- date and times are conditons are certainty is very important in shipping