Conditions, Warranty & Innominate Terms Flashcards
What are conditions?
Most important contractual term.
It is a term that goes to the root of the contract.
Breach means innocent party can treat contract as at an end (termination) and can also claim damages.
CASE: Poussard v Spiders & Bind
Opera singer contracted to start on 28 Nov but she was ill. Role given to someone else.
Held that the promise to start on said date was a condition and defendant had right to end contract.
What is warranty?
Less important contractual term.
If broken, the injured party must continue with the contract (no right to termite) but can sue for damages.
CASE: Bettine v Gye
Singer was two days late to an obligatory 6-day rehearsal. Held as a warranty not condition.
What is the difference by condition & warranty terms and a intermediate or innominate term?
Intermediate and innominate term - court will determine the effect of a breach after the term has been broken by looking at the severity of the consequences
Condition & warranty - courts look at the intention of the parties at the time of entering into the contract.
Terms will be classified as innominate if parties have not expressly categorised terms themselves.
CASE: Ark Shipping v Silverburn Shipping
Held that the term was innominate - rather than condition.
Parties did not expressly state that the term was a condition and term seemed to impose obligation after a breach.
