Terms of contract Flashcards
What are the two ways a contracts terms can be agreed?
Expressed and implied
What are the three categories of terms?
Condition
Warranty
Innominate terms
What are conditions?
A failure to perform the obligation would destroy the contract. If this occurs the contract can be repudiated
What case is an example of a condition?
Poussard v Spiers and Pond
What is the case of Poussard v Spiers and Pond?
Actress agreed to perform lead role failed to turn up she had broken her contract
What is repudiation?
Ending of a contract due to the failure to perform the obligation
What is a warranty?
A minor term in the contract. only damages can be claimed
What case is an example of a warranty?
Bettini v Gye
What is the case of Bettini v Gye?
Missed rehearsals not the actual performance can still deduct wages
What are innominate terms?
Condition not defined as a condition or warranty so is decided by the consequences of any breach of the term
What case is an example of an Innominate term?
Hong Kong Fir Shipping Co. Ltd v Kawasaki
What is the case of Hong Kong Fir Shipping Co. Ltd v Kawasaki?
Eighteen weeks use of the ship was lost due to engines not working was a breach of warranty
What factors do the court use to determine the difference between a term or a representation?
Importance
Special knowledge or skill of the person making statement
Time lag between saying and making
whether written in the contract
What case is an example of of importance attached to the representaion?
Couchman v Hill
What is the case of Couchman v Hill?
statement about whether an animal was pregnant or not was a term
What two cases relate to the person making the statement having special knowledge or skill?
Oscar Chess v Williams
Dick Bentley v Harold Smith Motors
What is the case of Oscar Chess v Williams?
Private seller of car believed car to be a 1948 model but was much older was not a term
What is the case of Dick Bentley v Harold Smith Motors?
Car dealer stated cars milage as much lower than actual milage even though not written was taken as a term
What case is an example of a time lag between a statement and a contract?
Routledge v Mackay
What is the case of Routledge v Mackay?
The statement was a representation and not a term
Can terms be implied into the law through common law or a statute?
Yes
What two Act’s are used in a business to business contract?
Sales of Goods Act 1979
Sales of Goods Act 1982
What Act is used for a business to consumer contract?
Consumer Rights Act 2015
What are the two ways terms can be implied by common law?
through business efficacy and the officious bystander test
by custom or prior dealings between the parties
What is meant by implied terms through business efficacy and the officious bystander test?
Court will imply the term into a contract if the term makes the contract work
What two cases are examples of Business Efficacy?
The Moorcock
Schawel v Reade
What is the case of the Moorcock?
The court implied a term that the ship would be safe mooring and not be damaged