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Contract: Terms

Conditions, warranties and innominate terms

  • 3 things to know
  • A2 Units 3 and 4

Overview

Condition in the classification of contractual terms, warranty in the classification of contractual terms and innominate term.

What you need to know

Answer each one before you reveal it.

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Key term

What approach did Hong Kong Fir Shipping v Kawasaki Kisen Kaisha (1962) take to the seaworthiness obligation?

Numbers

Which contractual terms are classified as conditions by statute in a business sale of goods?

Key term

How does section 15A of the Sale of Goods Act 1979 restrict a business buyer's right to reject?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define a condition in the classification of contractual terms.

    Model answer

    A condition is a term going to the root of the contract, so that breach of it entitles the innocent party to treat the contract as at an end as well as to claim damages.

  2. 2

    Define a warranty in the classification of contractual terms.

    Model answer

    A warranty is a minor term collateral to the main purpose of the contract, so that breach of it gives a right to damages only and the contract continues.

  3. 3

    Contrast the remedies available for breach of a condition with those for breach of a warranty.

    Model answer

    Breach of a condition allows the innocent party either to terminate and claim damages or to affirm and claim damages, whereas breach of a warranty allows damages alone.

  4. 4

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

    Model answer

    Her illness caused her to miss the opening performances, which went to the root of the engagement, so the producers were entitled to treat the contract as discharged and engage a replacement.

  5. 5

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

    Model answer

    He missed some rehearsals but was available for every performance, so the failure was collateral to the main purpose of the engagement and gave a right to damages only.

  6. 6

    What is an innominate term?

    Model answer

    An innominate term is one that is not classified in advance as a condition or a warranty, so the remedy depends on how serious the consequences of the particular breach turn out to be.

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Roles v Nathan ( ).
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AThe defendant owed the victim a duty of care and breached it.
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Pecuniary loss is financial and measurable.
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