Contract - terms: types of terms Flashcards
What are terms of a contract?
Where parties have agreed between themselves
They define the obligations of both parties
What is a condition?
If not complied with, main purpose of contract has been destroyed
Contract can be repudiated if not met
What happened in Poussard v Spiers and Pond?
Actress broken contract as her role was central to performance, contract could be repudiated
What is a warranty?
If breached, contract doesn’t come to an end, but damages can be claimed
What happened in Bettini v Gye?
Singer entitled to damages to cover loss of earnings. Couldn’t repudiate contract as it was a warranty not a condition
What is some AO3 for use of conditions and warranties?
Promotes certainty in the law. If condition not breached, contract is terminated. If warranty is breached, contract doesn’t come to end but damages can be awarded
Upholds public policy - ROL
However, lack of flexibility as both parties may be disatisfied with outcome as judge can’t change remedy of case
What is an innominate term?
It is unclear if it is a warranty or condition
Consequences of breach is decided by the court
What is some AO3 for innominate terms?
Intro of IT’s is pisitive as they prevent a contract being repudiated when it isn’t necessary
Allows judges to reach appropriate outcome for case in court
Level playing field where parties deal on unequal terms/prevents party suing when results of breach were trivial
What happened in Hong Kong Fir Shipping?
Court should look to the effect of breach and ask if breach has substantially deprived innocent party of whole benefit of contract
What is some AO3 for Hong Kong Fir Shipping?
IT’s allow courts to remedy issue once consequence of breah have been identified
Use their professional opinional
Upholds publuc policy
Conflicts with ROL
