'Condition', 'Warranty' and 'Innominate Terms' By Aasima

What is a condition and the remedies: regarded as main term; goes to the heart of the contract. Have the right to claim damages and you can terminate the contract however in some cases parties my affirm.

Case Law involved: Poussard v Spiers (1876) - An actress employed to play a leading role in an opera- she becomes ill and 5 days before the performance she is unable to perform for the first few nights. The courts implied that since the opening night is really important, the absence of her was a breach with makes the producers entitled to terminate the contract. If the parties label a term as a condition then courts may uphold this however it doesn't always render it so.

Lombard v Butterworth (1987)- The clause in lease agreement specifies that payments must be punctual otherwise agreement is to be terminated. D was late in paying some of the payments and when the 6th payment was late claimant wished to terminate the contract. The party was fine to classify the terms and were within their rights when they wanted to terminate contract.

what is a Warranty and the remedies available? - They are classed as minor terms; the party has the right to sue for damages only. however it does not lead to serious concequences if breached; therefore cannot end the contract.

Case Law?- Benttni v Gye: A singer employed to perform in theatres. Part of the contract was that singer should turn up 6 days before the performance. The producers had said they will terminate contract. The singer tries to sue and is successful. The courts held that the rehearsal was a minor term so no termination of the contract.

What is an Innominate term? It is the outset with absolute certainty the consequences of a particular breach.

why were they introduced? it affects of the breach of the seriousness the courts will view it like an condition. However if the effects are minor the courts view it as warranty looking at qualitative not quantitive terms. This gives flexibility to courts.

What remedies are available to breach the term? the remedy depends on the affects of the breach and not on the status on the term. There is no automatic entiltement to damages. Court focused on consequences of breach and have greater remedial flexibility.

Case Law- Hong Kong Fir Shipping v Kawasaki Kisen Kaisha Ltd (1962)- This case introduced the innomate terms. involved where needed sea worthy used to ship in Cargo. D's chattered a ship or years and the ship was delivered in 1957 where it sales to US to take Cargo to Japan. The ship is old so the ship machinery is needed to be maintained by experienced, competent, careful and adequate staff. This leads to shortage of the staff and the engineer was incompetent and drunk. 20 weeks of lease led to mere loss due to breakdown of the ship machinery The term included ' sea worthiness' of ship, clearly it was not that case. They wished to terminate the contract but the court said it was not an condition. This approach was criticised by some judges as lacking in certainty, especially in the context of commercial contracts. This was shown in the care of The MinhalisAngelos (1970) where the House of Lords held that "the expected neediness" clause is the agreement viewed as a condition; therefore the therms need to be certain in order for courts to provide remedy.

Created By
Aasima Tofiq 184CLS

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