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Contract: Express and Implied Terms

Conditions, warranties and innominate terms

  • 3 things to know
  • Components 2 and 3

Overview

The classification that decides whether a breach ends the contract or only sounds in damages — Poussard and Bettini, the Hong Kong Fir approach, and how far the parties can fix the status of a term themselves.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What is a condition?

Key term

What is a warranty?

Key term

What is an innominate term?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a condition?

    Model answer

    A condition is a term going to the root of the contract. Breach of a condition allows the injured party to terminate and claim damages.

  2. 2

    What is a warranty?

    Model answer

    A warranty is a minor term collateral to the main purpose of the contract. Breach of a warranty gives a right to damages but not to terminate.

  3. 3

    What is an innominate term?

    Model answer

    An innominate term is one whose importance cannot be judged until the breach occurs. The remedy depends on how serious the consequences of the breach turn out to be.

  4. 4

    Why was the opera singer's absence a breach of condition in Poussard v Spiers and Pond (1876)?

    Model answer

    Poussard v Spiers and Pond (1876) concerned a singer who missed the opening performances. The absence went to the root of the engagement, so the producers could end the contract.

  5. 5

    Why was the singer's absence only a breach of warranty in Bettini v Gye (1876)?

    Model answer

    Bettini v Gye (1876) concerned a singer who missed some rehearsals before the season. The breach affected only part of the engagement, so damages were the proper remedy.

  6. 6

    Which case created the innominate term approach?

    Model answer

    Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] created the innominate term approach. Diplock LJ asked whether the breach deprived the injured party of substantially the whole benefit of the contract.

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