Contract law

What do you understand by a ‘condition’, ‘warranty’ and ‘innominate term’? What are the remedies available for breach of these different types of term?

Warranty is a statement, a promise, a guaranty that what one party says or does is unconditionally true and can be relied upon from the other party. If warranty is breached the sufferer may be awarded damages as a remedy.
Condition is one of the main parts of a contract. It is a future event which, if it happens, will engage activities promised by the other party of the contract. If a condition is broken the sufferer has the right to terminate the contract.
An innominate term is an implied term. It's not specified anywhere like conditions and warranties, but it is "known" and it must be guided by.

Provide a case commentary on Hong Kong Fir Shipping v Kawasaki Kisen Kaisha Ltd [1962] 1 All ER 474 CA.

Hong Kong Fir promised to give Kawasaki one of their ships for 24 months, stating that it's fit for ordinary cargo jobs. However, due to inefficiency and old engines, for a total of 20 weeks the ship was held in docks because of repairs. Kawasaki then repudiated the contract and Hong Kong Fir sued them for wrongful termination. Hong Kong Fir won the case and Kawasaki appealed, after which the appeal was dismissed. The ratio behind this is that there can be termination of a contract if a party is almost entirely not able to obtain the consideration of the other party. If that is true for a contract, then repudiation is in order. If it's not and the party that lost something still terminates the contract, it is considered to be wrongful termination.

By: Georgi Kolarov

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Georgi Kolarov
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Created with images by TeroVesalainen - "handshake hand give" • C. K. Hartman - "Vintage Wallet Insert: Leather Wallet Warranty" • edar - "business signature contract" • tpsdave - "freightliner ship cargo"

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