CIMA BA4 Syllabus C. CONTRACT AND EMPLOYMENT LAW - Define The Various Contractual Terms - Notes ^{12 / 13}

Condition

This is a fundamental term in the contract

• If you breach it - then the other party can:

  1) Repudiate (rip up) the contract
  2) Claim Damages

• The case for this is Poussard v Spiers

Warranty

This isn't fundamental - it's just collateral to the main purpose of the contract

• If you breach it - then the other party can:

  Claim Damages only

• The case for this is Bettini v Gye

Innominate

This means we do not know what sort of term it is

We don't know until the term is breached

• If the term is breached and the other party loses the WHOLE benefit of the contract - then it was a condition

  If the term is breached and the other party loses PART of the benefit of the contract - then it was a warranty

• The case for this is Cehave v Bremer