Conditions, warranties and innominate terms Flashcards
what part of a contract is a condition
at the heart
what type of consequences does a breach of contract have
serious
where there is a breach of condition, what choice will the innocent party have
end or continue with contract + can claim damages
in what case was there a breach of condition as opera singer’s role was central to the performance
Poussard v Spiers & Pond
what is a warranty
a minor term of the contract
what are the consequences of a breach of warranty
only trivial - loss will result, but main purpose of contract will still be achieved
what will the innocent party have to do if there is a breach of warranty, but what can they claim for
must continue with contract, but can claim damages for any losses
in what case was the term considered a warranty
Bettini v Gye
what 3 factors are relevant when deciding whether a particular term is a condition/ warranty
1) intention of parties at time contract made
2) certain terms in major commercial contracts always classified in same way as business people need certainty
3) if act states they are a condition
what case stated that “readiness to load clause” will always be classified by the courts as a condition
The Mihalis Angelos
what is an example of acts stating a term is a condition (2 acts)
implied terms for sale of goods by legislation Sale of Goods Act 1979 and Supply of Goods and Services Act 1982
what is an innominate term
when it is difficult to tell whether the term is a condition or warranty
if the consequences of a term are more serious, then what term is it likely to be
a condition
in what case did the courts conclude that the time lost was not too serious so term was a warranty + only compensation could be claimed
Hong Kong Fir v Kawaski Kaisha Kasan