Types of Terms Flashcards
What are the steps for types of terms?
3 types
Consequences of breach
Representations vs terms
What are the 3 types of terms?
Conditions, warranties, innominate terms (these are all express)
What is a condition?
A term that is central to the contract explicitly stated as a condition
How is a condition defined?
A term so important that failure to perform it would destroy the main purpose of the contract
Which case shows a condition?
Poussard v Spiers
What is the remedy for a breach of a condition?
Repudiation (contract ends)
What is a warranty?
A minor term explicitly stated as a warranty
Which case shows a warranty?
Bettini v Gye
What is the remedy for a breach of a warranty?
Damages
What is an innominate term?
A term that isn’t explicitly stated to be a condition or warranty (it is still express though)
Which case shows an innominate term?
Hong Kong Fir Shipping v Kawasaki Kisen Kaisha (Hong Kong case)
What is the remedy for a breach of an innominate term?
It is decided whether it is equivalent to a condition or warranty and then the remedy for the respective term occurs - this is based off the definition of a condition
What are the 4 things to consider when identifying is a statement is a term or representation?
The importance of the statement
Special knowledge or skill of the person making the statement
The time lag between making the statement and contract
Whether there is a written contract
If a statement is important, is it a representation or term?
Term
Which case shows an important statement is a term?
Couchman v Hill
When does the special knowledge or skill of a person impact whether the statement is a term or representation?
If they are the one being untrue: it is a term
If the other party is the one being untrue: it is a representation
Which case shows that an expert being untrue makes that statement more likely to be a term?
Oscar Chess Ltd v Williams
Which case shows that being untrue to an expert makes that statement more likely to be a representation?
Dick Bentley Productions v Harold Smith Motors
What is the rule on a time lag between making a statement and contract?
If the contract is made later and does not refer to the statement, it is likely to be a representation
Which case shows a time lag between making a statement and contract?
Routledge v Mckay
How does whether there is a written contract impact whether a statement was a representation or a term?
If there is a written contract, the court presume everything the parties wanted to include as terms are in it, so an oral statement is likely to be a representation
