Contract Terms (General Consumer)

Question 1

what are terms and conditions?

Answer 1

terms of a contract are what parties have agreed
eg. specifically agreed by parties (express terms) or
implied in the contract

Question 2

type of term: condition (Poussard v Spiers and Pond)

Answer 2

terms central to the contract, breaking these is a serious breach which can end a contract

Question 3

Poussard v Spiers and Pond

Answer 3

facts: Mrs. Poussard arrived late for a performance due to illness. The company replaced her, and she sued for breach of contract.
held: court ruled in favor of Spiers and Pond, stating her lateness constituted a breach of contract.
principle: arriving late for a performance constitutes a breach of contract, regardless of the reason.

Question 4

type of term: warranty (Bettini v Gye)

Answer 4

minor term in the contract, breaching doesnt breach the contract as it is not the main purpose (damages may be awarded for this)

Question 5

Bettini v Gye

Answer 5

facts: Mr. Bettini, an opera singer, missed rehearsals due to illness. Mr. Gye replaced him, and Mr. Bettini sued for breach of contract.
held: court ruled in favor of Mr. Bettini, accepting his illness as a valid excuse, and he was not deemed to have breached the contract.
principle: Illness can excuse a party from breaching a contract if it prevents them from fulfilling their obligations.

Question 6

innominate term

Answer 6

terms that are clearly neither indeterminate, the consequences vary (Hong Kong Fir Shipping v Kawasaki Kisen Kaisha)

Question 7

Hong Kong Fir Shipping v Kawasaki Kisen Kaisha

Answer 7

facts: the ship chartered by Hong Kong Fir suffered frequent breakdowns due to poor condition. Kawasaki Kisen Kaisha sought to terminate the charter early.
held: the ship’s unseaworthiness constituted a repudiatory breach, allowing Kawasaki Kisen Kaisha to terminate the contract.
principle: persistent breaches, like frequent breakdowns due to unseaworthiness, can justify termination of a contract.

Question 8

representation or term?

Answer 8

some parts of an agreement can either be a term of the contract or merely a representation. it may affect remedy available

Question 9

mere representation ‘mere puff’

Answer 9

statements made that might be opinions or additional info that do not form the terms of the contract

Question 10

term or mere representation? courts consider:

Answer 10

importance attached to the representation
special knowledge or skills of the person making the statement
any time lapse between the statement and making the contract
if its a written contract or not

Question 11

Couchman v Hill

Answer 11

facts: Mr Couchman the jockey overslept, causing Mr Hill’s horse to be disqualified.
held: it was a breach of contract, and Mr. Hill was entitled to damages.
principle: statements important to the contract will be seen as a term

Question 12

Oscar Chess v Williams

Answer 12

facts: Mr. Williams sold a car to Mr. Chess, which was later found to be stolen. Mr. Chess sued for breach of contract, as Mr. Williams did not have the legal right to sell the car.
held: Mr. Williams breached the contract by selling a car he didn’t have the legal right to sell.
principle: a private seller is not expected to have the same level of expertise as a professional

Question 13

Dick Bentley v Harold Smith Motors

Answer 13

facts: Mr. Bentley sold a car to Mr. Smith, which turned out to be stolen. Mr. Smith sued for breach of contract
held: Mr. Bentley breached contract.
principle: important to make the distinction so C can claim the correct remedy.

Question 14

Routledge v Mackay

Answer 14

facts: noisy neighbors disturbed Mrs. Routledge’s peace in her rented flat. She sought to end the tenancy early.
held: the landlord breached the implied covenant of quiet enjoyment.
principle: if there is a time lapse a representation is not likely to be a term