Termination of Contractual Obligations & Specific Remedies

Question 1

What is the difference between a condition and a warranty?

Answer 1

-Condition: A term of fundamental character that goes to the root of the contract (Schuler v Wickman)
-Warranty: Does not go to the root of the contract, cannot terminate the contract for breach only claim damages

Question 2

What is meant by an innominate term?

Answer 2

Hong Kong Fir Shipping v Kawasaki, terms that are neither conditions or warranties but can act as either depending on the gravity of the breach

Question 3

When will a breach of an innominate term be repudiatory?

Answer 3

When it deprives the innocent party of ‘substantially the whole benefit which it was intended he should obtain’

Question 4

When does discharge of a contract occur?

Answer 4

The breach itself does not bring about discharge of the contract, at the decision of the innocent party
If the party takes too long in deciding it may be seen as affirming (Stocznia Gdanska v Latvian Shipping)
The innocent party could decide to insist on performance of the contract

Question 5

What are two different types of specific remedies that can be granted?

Answer 5

-Action for the agreed sum (White & Carter v McGregor)
-Specific Performance (Beswick v Beswick)