Week 7 - Types of Terms Flashcards
What are the four types of term?
- conditions
- warranties
- innominate terms
- implied terms
Why do we need to distinguish what kind of term a term is?
The remedy depends on how important the term was
What are conditiions?
Major terms in contracts - goes to the heart of the contract
What happens if a party breaches a condition?
The contract is likely to be considered as over and compensation is payable
Define warranties
Terms not crucial to the contract - can be resolved
Define innominate terms
Middle grounds between condition and warranty - looking at what went wrong. Not enough to end contract but would receive compensation
What happens if a party breaches a warranty?
The other party cannot end the contract but can claim for damages
What is the remedy if a innominate term is broken?
Decided at the time of the breach
Define implied terms
Terms added in, usually to protect consumers - a term or notice that is unfair is not legally binding on consumers
Which contract protects consumers buying from a producer or seller?
Consumer Rights Act 2015
Which contract protects businesses buying from another business?
Sale of Goods Act 1979
