Types of Terms

Question 1

Condition

Answer 1

An important term. If this isn’t complied the main purpose of the contract has been destroyed. Contract can be repudiated if not met

Question 2

Poussard V Spiers

Answer 2

She has broken her contract as her role was central to the performance. Contract could be repudiated

Question 3

Warranty

Answer 3

A minor term. If breached damages can be claimed

Question 4

Bettini V Gye

Answer 4

Was entitled to damages to cover loss of earning as a warranty was breached

Question 5

Innominate Terms

Answer 5

Unclear whether this is a condition or warranty. Judges will decide depending on consequence of the breach

Question 6

Substantial Benefit (Hong Kong Fir Shipping)

Answer 6

If breach denies you of substantial benefit = condition
If breach does not deny you of substantial benefit = Warranty

Question 7

Intention of the parties

Answer 7

If there is an error, the judges can make a decision based on what it is

Question 8

Arnold V Britton

Answer 8

Judged on the basis of what the reasonable man having all background knowledge would have understood the contract meant.