Terms: Classification P3 Section B

Question 1

what are terms

Answer 1

terms are the details of what has been agreed between 2 parties

Question 2

what are the different types of contract terms

Answer 2

conditions, warranties and innominate terms

Question 3

what is a condition of a contract

Answer 3

a condition is a major term of the contract - terms so important that failure to fulfil them defeats purpose of the contract

Question 4

what is the effect of breaching a condition

Answer 4

the contract can be repudiated
this means the parties do not have to go through with the contract

Question 5

what is the case for conditions

Answer 5

Poussard v Spiers and Pond

Question 6

what was the decision in Poussard v Spiers and Pond

Answer 6

Actually performing in the lead role was the main part of her contract - therefore was a condition

Question 7

what is a warranty

Answer 7

a minor term of the contract , failure to fulfill them doe snot defeat purpose of contract

Question 8

what is the effect of breaching a warranty

Answer 8

the contract still exist and continues but damages can be paid to the victim

Question 9

what is the case for warranty

Answer 9

Bettini v Gye

Question 10

what was the decision in Bettini v Gye

Answer 10

-attending the rehearsals was not the main part of the contract
-therefore the terms regarded rehearsals as a warranty
-due to it being a warranty his failure to show up to rehearsal meant he had to pay damages to the director but the contract continued and he still had his part

Question 11

what are the two cases to determine if something is a condition or a warranty

Answer 11

Poussard v Spiers and Pond
Bettini v Gye

Question 12

what is the case for the parties themselves may have specified what the term is

Answer 12

Schuler v Wickman Machine Tools

Question 13

why did the court say this was not actually a condition in Schuler v Wickman Machine Tools

Answer 13

here it was virtually impossible for W to make all 1400 trips and it seemed unlikely the parties would want the whole contratc to end if he missed even one for valid reasons such as being ill
- therefore unreasonable for this to be a condition despite it being called that

Question 14

what is an innominate term

Answer 14

a very broad term

Question 15

what happens if an innominate term is breached

Answer 15

breaching innominate terms can repudiate the contract( if breach is so serious it defeats contract ) or only lead to damages ( if not so serious and purpose of contract can continue )

Question 16

what is the case for innominate terms

Answer 16

Hong Kong Kir Shipping

Question 17

how does the court decide if an innominate term is a serious breach or not

Answer 17

looks at whether breach deprived party of substantially whole benefit of contract

Question 18

put this test for innominate term into own words

Answer 18

has breach taken away/defeated main purpose of contract

Question 19

what was decided in Hong Kong Kir Shipping

Answer 19

Lord Diplock decided the party had not been deprived of substantially the whole benefit of contract because they only last a few weeks out of 2 years

Question 20

why was the concept of innominate terms developed

Answer 20

provided a useful way of dealing with broad terms that could be breached in a serious or not so serious way

Question 21

why might the concept of innominate terms create problems

Answer 21

lack in certainty (i.e contract might have same exact wording but in one case can be different condition

Question 22

what is the case that shows the court being reluctant to use the concept of innominate terms

Answer 22

The Mihalis Angelos (1970) / Bunge Corporation

Question 23

what is the case for when the courts were willing to find innominate terms in a contract

Answer 23

Cehave v Bremer