Classification of terms

Question 1

Conditions

Answer 1

A term so important that a failure to perform would render the contract meaningless as the term goes to the root of the contract. If breached, then the claimant is entitled to damages, repudiation or both. Any term implied by statute, eg CRA 2015, is regarded as a condition - Poussard v Spiers

Question 2

Warranties

Answer 2

Lesser/minor terms (secondary to the major purpose of the contract). In a breach the contract can continue. Claimant can only claim damages - Bettini v Gye

Question 3

Innominate terms (aka intermediate terms)

Answer 3

• Where terms are perhaps ambiguous and courts need to examine the contract as a whole to determine whether the term is a condition or a warranty. Court will look at the circumstances existing at the time when the contract was breached and the consequences of the breach - Hong Kong Fir Shipping v Kawasaki.
• Have the parties labelled the term at the outset (although this is not necessarily conclusive) - see Schuler v Wickman