Individual Assignment on Contract Law
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Added on 2020-04-13
Individual Assignment on Contract Law
Added on 2020-04-13
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CONTRACT LAW2Question 1A key part of any contract is the terms of the contract, as these terms give rise to the legal rightsand duties for the contracting parties. The contractual terms could take the form of conditions,warranties, or can be innominate terms (Mau, 2010). A condition is defined as an important terms of the contract, which is at the base of the drawncontract. In case of a breach of condition, the aggrieved party has the choice of getting thecontract repudiated and simultaneously claim damages for the same (Clarke and Clarke, 2016).A leading example of this is the case of Poussard v Spiers (1876) 1 QBD 410, in which acontract was formed for performance as opera singer for three months by Poussard. However,due to her becoming sick 5 days before the opening night, she was unable to perform for the first4 nights and consequently had to be replaced. The court held that the condition had beenbreached by Poussard which allowed Spiers to end the contract (Latimer, 2012).Warranties are deemed as the minor terms of contract which do not form a fundamental part forthe contract’s existence. Where a warranty is contravened, the aggrieved party has the option ofclaiming damages; however, unlike condition, the contract cannot be ended (Bonell, 2009). InBettini v Gye (1876) QBD 183, there had been a contract by Bettini to perform as an opera singerfor 3 months. Due to his ill health, he missed six days of rehearsals and he was sacked as a resultof it. It was held that Bettini breached warranty and so the contract could not be ended sincerehearsals were not fundamental to the contract (Latimer, 2012). The concept of innominate terms was given in the case of Hong Kong Fir Shipping v KawasakiKisen Kaisha [1962] 2 QB 26. As per this approach, instead of classifying the terms as
CONTRACT LAW3warranties or conditions, the effect of breach has to be looked at and the questions regarding theaggrieved party having been deprived of the entire benefit of the contract in a substantial mannerhas to be looked at. The contract would be deemed at an end only when the aggrieved person hadbeen substantially deprived of the entire contractual benefit (McKendrick and Liu, 2015). In the quoted case, a ship had been chartered to the defendant for 2 years. Covered in thisagreement was a term that the ship would be “seaworthy” across the hire period. The troubleswere raised when the engine of the ship, along with its engine crew proved to be inept.Consequently, the ship was out of service for a period of five week at first instance and fifteenweeks at later instance. This was deemed as a breach of condition by the defendant and theyended the contract. The plaintiff raised a claim of wrongful repudiation stating the seaworthinesswas not the contract’s condition. The Court of Appeal held that the defendant had indeedwrongfully repudiated the contract and with this was the innominate term approach introduced.The court stated that twenty weeks out of two year contract period did not result in substantialdeprivation to the defendant of the entire benefit and so, the defendant did not have the right torepudiate the contract (Roach, 2016). Question 2Issue In the given case study, it is not disputed that Andrew and Bob were injured while they were at aconcert organized by the defendants, i.e., NIS and promoters. The issue here relates to whetherAndrew and Bob can sue NIS or the promoters of the event for their injuries, due to applicabilityof exclusion clause or not?
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