Contractual Terms and Breach of Contract : Report
Added on 2020-06-04
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Contractual terms
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Types of Terms...........................................................................................................................1Consequences of breach..............................................................................................................2Potential consequences of breach................................................................................................3Breach of contract's remedies......................................................................................................3How will court determine about the breach of contract..............................................................4How will they determine the effect of the breach.......................................................................4Innominate terms:........................................................................................................................7REFERENCES................................................................................................................................8
Project Question: What is the effect of the classification of Contractual terms on theremedies available for breach of Contract? How are breaches of innominate terms treated?INTRODUCTIONIf two parties are under any agreement or contract then they both come undercontractual obligation and breach of that obligation give rise to litigation. Contractualobligation are the implied or expressed terms under that contract which both the parties needto follow. If any of the two parties break the contract or do something against the terms andconditions implied or expressed in the contract then it is known as breach of contract. Thefollowing report will be covering the types of terms and their effect on the remedies availablefor breach of contract. Is will also throw some light on how court of law determine thatbreach has been occurred in the contract (Vicary and Jones, 2017). It will further includesome important cases regarding the importance of statements and timing of statements thecase laws like Couchman v Hill and Routledge v McKay.There are two classification of contractual terms which are as under:Conditions or warrantiesConditions are the most important part of contract and the breach of any conditionlaid down in the contract will lead to termination of the contract. While warranty is lessimperative than conditions and if any breach of warranty will not terminate the contract (Abdiand Aulakh, P2017). But both the breach of condition or warrant will cause some type ofdamages.Innominate termThis is the term which is neither condition nor warranty and breach of which may ormay not cause damages to contract depending upon their nature.Types of Terms.If the two parties want to come under any contract there are some types of statementswhich are made by both the parties to encourage the other one to come under the contract.And then after they come under the contract they both need to follow those terms of thecontract and any breach of them will lead to damage to the party. There are two types ofterms in the contract (Demir, 2017). That is condition and warranty. Condition is the mostimportant terms of that contract which is specified in contract and both the party need tofollow those conditions. The court will have the look upon those conditions is the case is put1
before the law for further clarification. Without having any condition in contract parties willnot be able to enter in an agreement or contract. While warranty will not be able to breach orterminate the contract only one who has done wrong will need to pay for the damage inmonetary terms for the loss. There is two basic of the terms which is expressed and implied.Expressed term is that which is laid down by both the parties who are in contract like theamount of agreed profit or loss in business (Khorooshi and Maleki, 2017).Implied term is that term which is implied by court of law and is not expressed in thecontract of those two parties.As in the case of Couchman v Hill [1947] in which P purchased a heifer at an auctionand the seller claimed that the cow was unserved and he bought it. But after that P foundheifer was pregnant and died because of some complications and P sued the seller. Ppurchased the heifer only on the condition that is been unserved so P was not held responsiblefor any error and P was misled by the condition of unserved heifer. Court did not accept D'sstatement as P would not have entered into the contract without the condition. So condition isthe types of terms under law and the need of importance of the statements in law.According to the case of Schawel v Reade [1931] in which claimant i.e., Schawelpurchased a horse from Reade and specified the purpose to use the horse for the stud purpose.Reade implied that the horse was fit and sound to be used for breeding and did not requireany verification and could be bought. He also ensured Schawel that if any issue raised withhorse then he will do the personal visit for veterinarian. But Schawel found that horse wassuffering from hereditary eye disease and it will not be able to used as a stud. Court held thatthis statement will be deemed as contractual term and Reade had promised Schawel that hewill rely on his word and Schawel had communicated the purpose for which horse was to beused. So Reade was claimed as breach of contract and at the starting there was a need forverification of the statement as well.Consequences of breach.Any of the breach of contract will always lead to either pay off the damages to theclaimant party or whole contract would be terminate (Bridge, 2017). The breach of contract iswhen a party under contract repudiates or fail to perform the obligation specified in contract.Then this breach of the conditions of contract will lead to claim for damages to the innocentparty or discharge from all liabilities. As in the case of Bentley production v Harold Smithmotors [1965] under which both the parties came under a contract in which Dick Bentley2
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