classification of terms AO1 (OCR)

Wha is a term?

A provision within a contract thats binds both parties. Depending on the importance of the term will inform of the consequences if breached

Condition?

Term which is central to the contract

What happens if a condition is breached?

Contract cant be performed. C will be entitled to repudiate the contract

Case for condition

Poussard v Spiers - failing to attend live performance

What is a warranty?

Minor term to the contract and more of an inconvenience if breached

What will C be entitled to?

Damages and the contract will be allowed to continue

Damages case

Bettini v Gye

Innominate terms

It is a tern which has not yet been classified

When will courts decide if a term is a condition or warranty?

Depending on the outcome of the breach

Example of dependent on the outcome (condition or warranty)

Hong Kong shipping - judge found the breach to only be a term as the ship was only unseaworthy less than 20% of the contract