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Flashcards in Terminating Contracts Deck (13)
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1
Q

What is a “condition”?

A

Goes directly to the root of the contract

Breach is normally treated as repudiating the contract

2
Q

What is a “warranty”?

A

Less vital terms.

Do not repudiate the contract but can give rise to damages

3
Q

What is an “innominate term”?

A

Between a condition and warranty

Whether it can repudiate a contract depends on the consequences of the breach

4
Q

Bettini v Gye (1876)

A

Singer missed rehearsals

This was considered a “warranty”, not enough to repudiate the contract

5
Q

Poussard v Spiers (1876)

A

Singer failing to arrive within the first week had repudiated the contract
This was considered a “condition”

6
Q

Re Moore + Landowners Contract (1921)

A

Packaging of cans was incorrect
Did not change the economic value
Considered to be a “condition” repudiating the contract
This was because of s13 of the Sales of Goods Act

7
Q

Wallis Son v Pratt and Haynes (1911)

A

Wrong seed delivered
This was contrary to the Sales of Goods Act s13 enabling it to be a “condition”
However they accepted it affirming the contract

8
Q

Schuler AG v Wickman Machine Tools (1974)

A

‘It shall be a condition that…’
The use of the word condition is not conclusive
Wickman was able to claim damages for wrongful repudiation

9
Q

Hong Kong Fir Shipping (1962)

A

Was a breach of the “seaworthiness” clause enough to repudiate the contract?
No- it did not deprive the parties of the whole benefit
Lord Diplock- it is the seriousness of the consequences rather than the importance of the term
Introduction of innominate terms

10
Q

Bunge Cooperation New York v Tradax (1981)

A

Notice for readiness to load
Buyers terminated the contract due to no notice
In this case it was contextually so vital that it was held as a “condition”

A Fundamental Term

11
Q

The Hansa Nord (1976)

A

Intermediate term
Delivery of pulp pellets
Some of the shipment deteriorated
They terminated the contract and then bought the same pellets for a cheaper price at an auction
The consequences were the same so they were unjustified in terminating the contract

12
Q

Hochster v De la tour (1853)

A

Anticipatory breach

The innocent party need not wait for the breach to claim damages

13
Q

White and Carter (Councils) v McGregor (1962)

A

Company that attached advertisements to bins
Council changed there mind just after signing the contract
The company affirmed the contract and carried it out for 3 years
They then claimed damages
Lord Reed - cannot perform just to claim damages and cannot compel another party to perform
Need to mitigate the loss