Law of Obligations I: Express & Implied Terms Please note, that I have used Question & Answer: Contract

Law by Marina Hamilton 2012 to help me put this table together.

Classication Denition Condition Fundamental term determined at the time the contract is made. Innocent party can accept the repudiatory breach, treat the contract as discharged and claim. Warranty Minor term added to the root of the contract determined at the time the contract is made. Damages only. Innominate Term Determined by the consequences of the breach. Depends on seriousness of the breach as to whether remedy provided will be as for breach of contract. - Hong Kong Fir Shipping Co. Ltd v Kawasaki Ltd 1962: the loss of 20 weeks in a ships charter because of unreliable engines and staff breached a term as to being seaworthy. it was held that the effect of the breach had to be considered. The breach in this case did not deprive the whole benet of the contract and so there was no right of termination.

Effect of Breach

Cases

- Poussard v Spiers and Pond 1876: - Bettini v Gye 1876: a an actresss contract is terminated as performers contract could not she became ill and missed the be breached. As the term asking opening week which was deemed to him to coming six days before be a condition of the contract. for the rehearsals was said to be - Schuler AG v Wickman Machine Tool a warranty (he came three days Sales 1974 - where the interpretation late) of a condition would lead to - Acros Ltd v E.A. Ronaasen & unreasonable results so intention is Sons Ltd 1933- Section 15A of looked at. the Sale of Goods Act 1979, that - Lombard North Central plc v the terms regarding precise Buttterworth 1987- making a term of performance of goods are the essence to demonstrate the warranties. intention that a term be classied as a condition.

Classication Denition

Condition Fundamental term determined at the time the contract is made. - Legislation can be used to determine the classication of terms. For example, Sections 13-15 of the Sale of Goods Act 1979 imply that the terms are condition particularly where to do with goods corresponding to their description.

Warranty Minor term added to the root of the contract determined at the time the contract is made.

Innominate Term Determined by the consequences of the breach. - The effect of the breach of contract will only be known when the seriousness of the breach are known. This provides exibility and fairness but at the expense of certainity. - Flexibility has to be weighed with commercial certainity so caution must be given just incase it gives too wide an application - The Mihalis Angelos 1971

Further Notes