Types of terms

Question 1

What are the types of terms?

Answer 1

Condition
Warranty
Innominate terms
Substantial benefit
Intention of parties

Question 2

What is a condition? Case

Answer 2

An important term, can end a contract if not met
Poussard v Spiers and Pond- broke her contract as important

Question 3

What is a warranty? Case

Answer 3

A minor term and if breach contract doesn’t come to an end but they can claim compensation
Bettini v Gye- entitled to damages and couldn’t end contract as it was a warranty

Question 4

What is an innominate term?

Answer 4

Unclear whether a condition or warranty so decided b y courts

Question 5

What is a substantial benefit? Case

Answer 5

If breach denies substantial benefit= condition, if not its a warranty
Hong Kong shipping v Kawasaki- deprived innocent party whole benefit of contract

Question 6

What is intention of parties? Case

Answer 6

Judges take into account intention, if error the judges makes the decision
Arnold v Britton- reasonable person must have background knowledge and understood the contract