contract law seminar six - deepali rathod

what is the definition of condition?

- CONDITION = a condition in a contract for the sale of good is a vital stipulation, the breach of which may give rise to a right to treat the contract as ended or repudiated. This renders any further performance unnecessary and the claimant may also be able to sue the other party for damages.


- WARRANTY = a term that is collateral to the main purpose of a contract, the breach of which gives rise to a claim for damages, but not a right to reject the goods and treat the contract as repudiated. This may be an express or implied term. In terms of sales of goods, if a warranty is breached the claimant is entitled to claim damages.


- INNOMINATE TERMS = terms neither named nor classified. breach of this shall not entitle the non-defaulting party to treat the contract as repudiated. Remedy for a breach of an innominate terms depends on the nature of the term. If the claimant has lost the whole of the benefit of the contract he will be entitled to treat the contract as repudiated and claim damages. However if not, the claimant will only be entitled to damages only.

Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd (1962) 1 all er 474 ca

- WHAT WAS THE CASE ABOUT? = the defendants in the case chartered a ship for a period of 2 years from the plaintiffs. 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 plaintiffs 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.

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Deepali Rathod


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