Conditions, Warranties, and Innominate terms Flashcards
1
Q
What is a condition?
A
A condition is a term in the contract that is central to the contract. If it is breached, the contract may be repudiated (ended) (Poussard v Spiers and Pond).
2
Q
What is a warranty?
A
A warranty is a term in the contract that is minor. Damages can be claimed for breach of warranty but the contract is not ended because the main purpose of the contract will continue to be performed (Bettini v Gye).
3
Q
What is an innominate term?
A
. This is a term that is not defined as a condition or a warranty.To work out which it is, the court has to decide how severe the consequences of the breach of the term were. (Hong Kong Fir Shipping v Kawasaki KK.)
