Types of terms Flashcards
What are the 3 types of terms
Condition, warranty or innominate term
Why is it to identify the type of term
As it determines what happens if the contract is breached
Why is a condition so important
As a failure to perform it would
destroy the main purpose of the contract
What case would you use for condition
Poussard v Spiers and Pond
If a condition is breached, what does the claimant have the right to do
1) Repudiate the contract or
2) Continue and/or
3) As well as claim damages
What is a warranty
A minor term of the contract
What is the only thing that can be claimed for a breach of warranty
Damages
What case do you use for warranty
Bettini v Gye
What is an innominate term
An innominate term is one that is not clearly a condition or a warranty, and so is an intermediate term
How is it determined whether its a condition or warranty
Depends on the consequences of any breach. The parties must wait until the effect of the breach shows that the term was a condition or a warranty
What case do you use for innominate term
Hing Kong Fir v Kawasaki
What is the test in innominate term
Whether a party is ‘deprived of substantially the whole benefit’ that they were intended to get from the contract
