Terms of a Contract - Paper 3 Flashcards
What are the terms of a contract?
The things that the parties have actually agreed to between themselves
What are the two types of terms?
Express and Implied Terms
What are express terms?
Terms that are actually agreed by the parties themselves
What are implied terms?
Terms that you have not specifically agreed to, but are put into your contract by law
How can terms be implied into a contract?
1) By custom
2) By fact
3) By statute
What are conditions?
A term in a contract that is so important that a failure to perform it would destroy the main purpose of the contract
What was held in Poussard v Spiers & Pond?
If a condition is breached, you can end (repudiate) the contract, or continue with it, or claim damages
What are warranties?
A minor term of a contract, a loss will result if there is a breach but the main purpose of the contract will still be achieved
What was held in Bettini v Gye?
If a warranty is breached, you must continue with the contract, and can claim for damages
What are innominate terms?
A term that is not clearly a condition or a warranty, so whether it is treated as a condition or a warranty depends on the consequences of any breach
What was the decision in Hong Kong Fir v Kawasaki?
If the breach substantially deprives you of the whole benefit of the contract, then it will be classed as a condition
