Terms: Types of Terms in a Contract

Question 1

Poussard v Spiers and Pond

Answer 1

• Her presence was central to the production; it was a condition entitling the producers to repudiate her contract for her non-attendance.
• Conditions

Question 2

Bettini v Gye

Answer 2

• The rehearsals were not central to the contract to sing, so the concert organiser could not repudiate his contract. He had not broken a condition in the contract.
• Warranty

Question 3

Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd

Answer 3

• Not all contracts could be simply divided into terms that are conditions and terms that are warranties.
• Many contracts are more complex.
• Innominate term

Question 4

Arnold v Britton

Answer 4

• When interpreting contract, courts are to be concerned to identify the intention of the parties by reference of the reasonable man.
• It’s not the court’s job to save a party from a bad decision or from imprudent advice.

Question 5

Rainy Sky v Kookmin Bank

Answer 5

• If there are two possible constructions, the court is entitled to prefer the construction which is consistent with business common sense and to reject the other.