Contract Law Condition, Warranties and Innominate Terms

A condition can be defined as terms of a contract that give the right to terminate and claim damages upon breach of the condition. The breach of which may give rise to a right to treat the contract as ended or repudiated.

The term warranty can be seen to be defined as a term of a contract that is not a condition and gives the right to damages but not termination upon breach of the warranty. These terms are seen to be collateral to the main purpose of a contract, the breach of which gives rise to a claim for damages.

Innominate terms can be defined as a third type of term, neither a condition nor a warranty - meaning it is neither names or classified as it is a kind of intermediate or hybrid term because sometimes its breach gives a right to terminate and sometimes it only gives a right to damages, depending on how serious the consequences of the breach are.

HONG KONG FIR SHIPPING CO LTD V KAWASAKI KISEN KAISHA LTD (1962) 1 ALL ER 474 CA: This case involves the defendant who chartered a ship for a period of 2 years from the plantifs. Within this agreement, a clause stated the ship was fit for cargo service. During these 2 years, 20 weeks were lost due to engine and staff issues which entitled the defendants to claim for damages however they made the mistake of ending the contract instead. As a result, the plantifs brought action against the defendants claiming wrongful repudiation as they had ended the contract. The Court of Appeal agreed, the breach did not justify the termination of the contract as the defendants had not been deprived from the benefits of entering the contract.

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.