where terms come from and their classification

Question 1

define express terms

Answer 1

• are terms that are comunicated between the parties
• oral + written

Question 2

define implied terms

Answer 2

• they are not expressly agreed on by the parties
• statute + courts + trade customs

Question 3

what are the 3 sources of implied terms?

Answer 3

1. terms implied at common law = protect parties from exploitation
2. terms implied by trade customs and practice = Hutton V warren
3. Statute = Terms may be implied into certain types of contract. An example can be found in the Consumer Rights Act 2015
   which protects consumers against faulty goods.

Question 4

Conditions

Answer 4

• most important
• in the event of breach, it releases the other party

Question 5

warranties

Answer 5

• minor terms
• in the event of a breach = damages
• Bettini v Gye 1876 = A singer failed to turn up for the first three of the six rehearsal days. This was held to be a minor breach (a breach of a warranty) as no performances were missed and she could still make half the rehearsal days.

Question 6

innominate terms

Answer 6

• Neither conditions or warranties
• Courts will wait to see the consequences of any breach before deciding the seriousness of the term.
• Hong Kong Fir Shipping v Kawasaki Kisen Kaisha =
  A ship was out of use for 20 weeks of the 24 months it was hired for. It was held that this breach was not serious enough to bring the contract to an end. It was still available for approximately 18 months out of the 24.