Classifying Terms Flashcards
(16 cards)
3 types of classifying terms
Conditions, warranties, innominate terms
what is a condition?
the most integral terms in a contract. contain core agreements.
remedy for breach of condition
damages and/or termination
Poussard v Spiers (1876)
Key case for conditions.
singer hired for leading role but cannot make opening night due to sickness. Singer sues production for replacing her, court held singer was in breach of condition for not attending opening night.
what is a warranty?
a term that is not a condition as it is not integral to the contract.
Remedy for breach of warranty
Damages only. Repudiation is unlawful.
Bettini v Gye (1876)
Key case for warranties
singer contracted to 6 rehersals but illness meant he only made 3. Producers sought repudiation. Court held rehersals were not a condition of the contract and it was only a breach of warranty so damages were the only remedy available.
How are insurance warranties treated differently to regular warranties?
They are treated like conditions as they are taken as more integral parts of a contract.
De Hahn v Hartley
Key case for insurance warranties
Insured a ship sailing from UK->Africa->West Indies.
Only 46 men were onboard from Liverpool, and 4 men boarded at Anglesey.
Ship sank, but the insurance was void as less than 50 men were onboard at its origin (Liverpool).
What are innonimate terms?
terms that cannot accurately be classified as either condition or warranty, so it’s discretionary.
Consequences of breaching innonimate terms
Discretionary- determined by the impact of the breach
Case in which the test for innonimate terms was found
test found in Hong Kong Fir Shipping v Kawasaki [1962]
Hong Kong Fir Shipping v Kawasaki [1962]
Key case for innonimate terms
term of contract stated that it would be seaworthy for its 2 year hire.
Ship was out of service for 20 weeks.
Defendants terminated the contract.
Claimants claimed wrongful repudiation as ‘seaworthiness’ was not a condition - upheld as they were not deprived of ‘substantially the whole benefit’
Diplock named these ‘innonimate terms’.
First stage of the 2-stage-test for innominate terms
Is the term difficult to determine without looking at the extent of the breach?
Second stage of the 2-stage-test for innonimate terms
does the breach deprive the innocent party of substantially the whole benefit?
Yes - treated as a condition
No - treated as a warranty
Criticisms of innonimate terms
Megaw LJ - Innonimate terms lack certainty
They can be inconsistent
