Notes Condition, Warranties And Innominate Terms Flashcards
Why is it important to know if a term is a condition or a warranty?
In order to determine which remedy is available.
What is a condition?
A major term of the contract which goes to its root.
What is the remedy for breach of a condition?
The innocent party is entitled to repudiate the contract and claim damages (Poussard v Spiers - missed first 5 nights of opera show and hey were the most important).
What is a warranty?
Minor terms of the contract which are not central to its existence.
What is the remedy for breach of a warranty?
The innocent party is entitled to claim damages but not repudiate the contract (Bettini v Gye - missed rehearsals).
What is an innominate term?
It looks to the effect of the breach and questions whether the innocent party was deprived substantially of the whole benefit of the contract. If they are they can repudiate the contract.
Does it matter if a term is classified as a condition?
No, the courts will determine whether it is one (Wickman Tools).
When should an innominate term approach be used?
Only when it is impossible to classify the term as a condition or a warranty (Bunge Corporation).
When were innominate terms introduced?
Hong Kong Fir Shipping.
