TEST 3 PT2

Question 1

The terms of a contract fall into three categories:

Answer 1

conditions, warranties and innominate terms

Question 2

The sources of implied terms

Answer 2

statute, Business efficacy, Trade custom and practice

Question 3

are the most important terms which form the main structure of the contract. If particular details are crucial to one party, this must be pointed out to the other party before the formation of the contract is completed.

2 remedy _____ & _______

Answer 3

Conditions

repudiation & compensation

example, when you are booking hotel accommodation, the dates of your stay and the type of room (single/double) are some of the most crucial requirements.

Question 4

are more minor terms; they are ancillary to the contract rather than crucial to it. Their absence does not stop you from getting most of the enjoyment that you expect from the holiday.

1 remedy ________

Answer 4

Warranties

compensation ONLY

ex: wifi, d color of the room

Question 5

expressed terms

implied terms

Answer 5

terms that are specifically expressed & communicated either vocally or written.

not specifically stated but it is considered a part of the contract still.

Question 6

The use of the words ‘condition’ and ‘warranty’ to describe a term is of ______value only – it is not conclusive in itself

Answer 6

evidential

Question 7

innominate terms ______ be found in a contract. It can only be determined by the court after a breach.

Answer 7

CAN NOT

Question 8

1. the expressed intention of the parties is paramount. (breaking d contact)
2. the use of the words “condition” & “warranty” to describe a term is of evidential value only– not conclusive in itself.
3. If a party has a statutory right to terminate the contract if a term is breached, the term is a condition.
4. Consistently established commercial practice will determine the status of a term. (custom & tradition) (The one who delivers also unloads like cement, gravel, etc.)
5. If the damage resulting from the breach is so extensive that it substantially deprives the innocent party of the benefits bargained for, that party may repudiate their obligations. The damage test is, in practice, used as a last resort. (stealing will cause immediate firing)

Answer 8

criteria used by the court to interpret the status of the innominate term