Contents of a contract

Question 1

What is a contractual term?

Answer 1

Terms are specific details of the agreement, including the details about each party’s rights and obligations.

There are two forms of terms: (1) express and (2) implied.

There are three categories of contractual terms: (1) conditions, (2) warranties and (3) innominate terms.

Question 2

What is an express term?

Answer 2

Express terms are explicitly agreed to between the parties (i.e. which are spoken or written).

Question 3

What are implied terms?

Answer 3

Implied terms are those not actually expressed by presumed

Question 4

What are conditions?

Answer 4

A condition is a term that is so important that any breach of it, no matter how small, will enable the innocent party to rescind/terminate the contract in addition to recovering damages.

Question 5

What are warranties?

Answer 5

Warranties are less important terms that do not allow for rescission/termination. The only remedy for breach of a warranty is damages.

Question 6

What are innominate terms?

Answer 6

Innominate terms are neither conditions or warranties and remedies (either damages only or damages and rescission) depend on seriousness of breach.

Question 7

What is an exclusion clause?

Answer 7

An exclusion clause aims to limit or exclude liability of one party.