Importance Of Terms

Question 1

3 types of terms

Answer 1

Conditions
Warranties
Innominate terms

Question 2

Conditions

Answer 2

Terms so important, a failure to perform would render contract meaningless. Claimant can rescind.

Question 3

Case for conditions

Answer 3

Poussard v Spiers & Pond
C to perform lead role in opera. Fell ill. When replaced, sued for breach.
Held: C had breached condition, so D was entitled to rescind

Question 4

Warranties and case

Answer 4

Minor terms not fundamental to contract, damages awarded.
Bettini v Gye
Contracted to perform in opera and attend rehearsal for 6 days. Fell ill, only attending 3.
Held: term was a warranty, C was not entitled to rescind.

Question 5

Innominate terms

Answer 5

May be either conditions or warranties, courts look at consequences of breach.

Question 6

Case for innominate terms

Answer 6

Hong Kong Fir v Kawasaki
D hired ship for 2 years ‘in every way fitted for ordinary cargo service’. Broke down, remained out of use for 18 weeks.
D repudiated but C sued for breach, claiming term was a warranty, not a condition

Held:breach did not substantially deprive D of whole benefit, so not entitled to repudiate. Term was broad so could be breached in an unimportant way