Terms Flashcards
Express terms and implied terms difference
Express - specifically agreed between parties
Implied - implied in contract
3 types of term
Condition
Warranty
Inonimate term
Condition definition
Term in contract so important that not performing would destroy purpose of contract
Poussard v Spiers
Actress agreed to perform. Did not go to first few performances - broke contract by not turning up. Repudiated
Repudiation def
1 party ends contract when other party fails to perform duty owed
Rescission def
Remedy from court - ends contract
Warranty def
Minor term in contract - only damages can be claimed from breach not ending contract
Betting v Gye
Singer contracted to perform at concerts and 6 days rehearsal - didn’t go to rehearsals and replaced - rehearsals were warranty - G had no right to end contract - singer awarded damages for earnings
Innominate term
Term that is not a clearly warranty or condition. May be viewed as either
Hong Kong Shipping v Kawasaki
Loaned a boat for 2 years. Term said ship should be every way fit for cargo service - problems with engine - lost 18 weeks use of ship while being repaired - repudiated contract - seen as a warranty only damages awarded
What is considered when deciding if a statement is a term
- importance of statement to contract
- special knowledge pr skill of person making statement
- time lag between statement and contract
- if there is a written contract
Couchman v Hill
Auction said heifer not pregnant. Was in fact pregnant and then died, statement important to purchaser seen as term
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