Mohammed Adil Hussain.sEMINAR GROUP- MONDAY 12-1PM, DAN BANSAL
A condition can be defined as a major term of the contract essentially one which 'goes to the root of the contract'. Breaking a condition of the contract can lead to not only the other party being able to sue but also terminate the contract if needed, A warranty is however a minor term of the contract but in a contract regarding insurance this can be seen as a major term and very serious if breached. However unlike a condition the claimant or the party is only able to sue for damages. An innominate term is a term that has been classified by the courts and can be used when no expression of the status of a particular term has arisen from the agreement from whichever source this can be viewed as an innominate term.
The remedies available for a breach of a condition is that the party is able to claim for damages and they are also able to terminate the contract if they wish to do so. Also they can affirm the contract and simply claim the damages that are only owed. Regarding a warranty, a breach of warranty typically leads to the party only being able to sue for damages only as they are not granted the power to terminate the contract. Moreover, regarding innominate terms, the claimant can sue for damages and also terminate the contract if they have been so deprived, however if they have not then they will only have the option to sue for the damages that they are entitled to.
The defendants within the case of Hong Kong Fir Shipping v Kawasaki Kisen Kaisha had chartered a ship for the plaintiffs for a period of two years. The charter party embedded a term within the contract which required the plaintiffs to provide a ship which was ' in every way fitted for ordinary cargo service'. However it was held that the ship was kept in a poor condition and the crew within the ship were incompetent, this also led to no usage of the ship occurring for twenty weeks. The defendants held that they should be able to terminate the contract as a breach of condition however the plaintiffs held that the breach should only lead to them being able to sue for damages. Eventually the plaintiffs were successful in their case for wrongful termination.