Terms - Classification

Question 1

Conditions

Answer 1

Major terms of contract

Question 2

Breach of condition

Answer 2

defeats point of contract
contract can be repudiated

Question 3

Terms that go to the root of the contract are conditions

Answer 3

Poussard v Spiers and Pond

Question 4

Warranty

Answer 4

Minor term of contract

Question 5

Breach warranty

Answer 5

doesn’t defeat point of contract
only damages awarded

Question 6

terms that don’t affect purpose of contract are warranties

Answer 6

Bettini v Gye

Question 7

Three ways to determine between C and W

Answer 7

1. root of contract
2. specify in statute
3. parties specify

Question 8

terms that are very unreasonable or onerous will be treated as warranties even if specified as conditions

Answer 8

Schuler v Wickman Tools

Question 9

Inominate terms

Answer 9

broad or ambiguous terms

Question 10

‘deprivation of benefit’ - can aim of contract still be completed

Answer 10

Hong Kong Fir Shipping

Question 11

readiness to load clauses are conditions

Answer 11

Mihail Angelos/ Bunge Corp

Question 12

Courts will find a term is inominate if one is attempting to exploit the term

Answer 12

Cehave v Bremer