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Chapter

Cover Contract Law Directions

5. Positive terms  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. The terms of the contract give substance to the contractual parties’ obligations. They lay down what each party is expected to do in performance of his obligations, and so it is crucial in any dispute to first establish the terms of the contract before looking to see whether one party has failed to perform his obligations. This chapter focuses on the positive terms of the contract. The discussions cover terms and representations; collateral warranties; implied terms; and conditions, warranties and innominate terms and the significance of the remedies, including termination, attached to each.

Chapter

Cover Contract Law Directions

5. Positive terms  

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. The terms of the contract give substance to the contractual parties’ obligations. They lay down what each party is expected to do in performance of his obligations, and so it is crucial in any dispute to first establish the terms of the contract before looking to see whether one party has failed to perform his obligations. This chapter focuses on the positive terms of the contract. The discussions cover terms and representations; collateral warranties; implied terms; and conditions, warranties and innominate terms and the significance of the remedies, including termination, attached to each.

Chapter

Cover Commercial Law

17. The remedies of the buyer  

This chapter sets out the remedies available to the buyer under a contract of sale. Before the Sale and Supply of Goods to Consumers Regulations 2002, these remedies comprised damages for non-delivery of the contract goods, specific performance, and damages for breach of warranty. In cases of breach of condition, the buyer generally has the right to reject the goods and repudiate the contract. Since implementation of the 2002 Regulations, a buyer who deals as consumer has additional remedies of repair, replacement, reduction in price, or rescission. These additional consumer remedies are discussed after a consideration of the remedies that are available to all buyers, including consumers, beginning with those remedies granted to a buyer where the seller fails to deliver the goods, or fails to deliver on time. Certain consumer contracts entered into after 1 October 2015 are governed by the Consumer Rights Act 2015, which is also discussed.

Chapter

Cover Business Law

8. Terms of a Contract  

This chapter focuses on the terms or details of a contractual agreement, and considers the implications of what the parties intend to include in the agreement, what they did not mean to be included in the contract, and what significance different terms may have in the contract. It distinguishes between the terms of a contract and representations, and considers whether, when a term has been identified as such, it is a ‘condition’ or a ‘warranty’. The chapter then studies how terms are implied into the contract and how this affects terms that have been expressed. It concludes by examining how parties may seek to exclude or limit a legal responsibility through the incorporation of an exclusion clause.

Chapter

Cover Essential Cases: Contract Law

Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26, Court of Appeal. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Essential Cases: Contract Law 5e

Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26, Court of Appeal. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Koffman, Macdonald & Atkins' Law of Contract

8. Classification of terms  

This chapter distinguishes conditions, warranties, and innominate terms in relation to the different consequences of their breach; the availability, or not, of the right to terminate for breach. It identifies the test for determining which classification applies to a particular term, relating it to the benefits and drawbacks of the condition and the innominate term categorizations: certainty/inflexibility in relation to conditions and flexibility/certainty in relation to innominate terms. The development of the innominate term approach in Hong Kong Fir is explored. The significance of the objective intention of the parties at the time the contract was made is examined with reference to key cases, such as Bunge v Tradax and Ark Shipping v Silverburn Shipping.

Chapter

Cover Commercial Law

Additional Chapter Principles of Insurance Law  

Put broadly, insurance is a contractual process whereby risk is transferred from a person who might incur a loss to an insurer. Whilst insurance law is at root merely an example of applied contract, in fact it has some unique characteristics and practices and a terminology all of its own. In this chapter we will consider the key characteristics of insurance law. After examining the meaning of insurance, including the concepts of indemnity and insurable interest in liability and property insurance, we move to the structure of insurance policies. The ways the courts have interpreted insurance wordings and insurance warranties, conditions precedent, and basis of the contract clauses are dealt with before the extensive reforms wrought by the Insurance Act 2015 are introduced. Insurance policies, even so-called all risks policies, do not cover all causes of loss which an insured might suffer, so the concept of causation in insurance is particularly important and this is dealt with next. The chapter closes by reviewing insurance claims, including the effect of fraudulent claims, how the level of disclosure expected of an insured is far higher than in a non-insurance context, and how these issues have been the subject of substantial reform under the newInsurance Act.

Chapter

Cover Commercial Law

8. Relations between agent and third party  

This chapter considers the relations between the agent and third party. The typical function of an agent is to affect the legal position of his principal in relation to third parties, typically achieved by the agent effecting contractual relations between his principal and a third party or third parties. To this contract, the agent is usually a stranger and it therefore follows that, providing all parties perform their obligations, there will be no legal relations between the agent and third party, aside from any warranty of authority that might be deemed to exist. If the parties, however, fail to properly perform their obligations, legal relations between the agent and third party may arise that allow one party to sue, or be sued by, the other. This chapter discusses the general rule, and also those situations where the agent and third party will acquire a cause of action against the other.

Chapter

Cover Anson's Law of Contract

5. The Terms of the Contract  

Jack Beatson, Andrew Burrows, and John Cartwright

This chapter discusses the nature and import of contractual terms and the form which they may take. First, it distinguishes the terms of a contract from representations, which are statements made by one party to the other that are not intended to be an integral part of the agreement. Similarly, collateral warranties, which are preliminary assurances that are contractually binding, but not as part of the principal agreement, are distinguished from representations which are not contractually binding. Second, the importance of different types of terms is examined by reference to the distinction between conditions, warranties, and innominate terms. Third, the implication of terms into contracts is explored. Finally, the chapter considers the interpretation or construction of terms.

Chapter

Cover JC Smith's The Law of Contract

25. Conditions, warranties, and innominate terms  

If a party fails to perform a promise in a contract, it is in breach and liable to pay damages. But some breaches of contract not only entitle the injured party to claim damages, but also to put an end to the contract. The nature of the term becomes important when considering the right to terminate. This chapter discusses the meaning and scope of conditions, warranties, and innominate terms. A party may terminate a contract for breach of condition, but never for breach of warranty. Terms that are neither conditions nor warranties are called ‘innominate’ terms. It may be possible to terminate a contract for breach of an innominate term if the breach is sufficiently serious. Breaches which justify termination are often called ‘repudiatory breaches’. The chapter also considers express termination clauses and another difficult sense in which the term ‘condition’ is used, namely to denote an ‘entire obligation’.

Chapter

Cover Contract Law

15. Breach of contract  

Repudiation and the right to terminate

This chapter examines how English law defines breach of contract and what the immediate effect of breach is on the validity of the contract, along with the obligations of the parties under the contract. It first considers the core principles underlying the law’s approach to defining breach before explaining how the courts assess performance and the consequences of breach, with particular emphasis on cases involving repudiation. It then discusses three types or classes of contractual terms: conditions, warranties, and innominate terms. It also looks at how the law deals with situations of anticipatory breach and concludes with an analysis of the scope and limits of the right of a party to terminate the contract following a repudiatory breach by the other party.

Chapter

Cover Concentrate Questions and Answers Contract Law

4. Terms of the Contract  

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary, and other features. This chapter explores the terms of the contract. It contains questions and answers concerning express and implied terms, how terms are to be identified, and how they are to be classified in order to determine what consequences flow from their breach. The chapter also considers two key debates: the basis on which the courts imply terms into contracts, and whether the courts approach the classification of terms highlights a tension in the law between certainty and justice.

Chapter

Cover Poole's Casebook on Contract Law

5. Content of the contract and principles of interpretation  

Robert Merkin and Séverine Saintier

Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter examines what the parties to a contract have undertaken to do; that is, the terms of the contract, and the principles determining how the courts interpret the meaning of those contractual terms. It considers whether pre-contractual statements are terms or mere representations. The chapter then turns to written contracts, focusing on the parol evidence rule, entire agreement clauses, and the effect of signature on the contractual document. It also discusses oral contracts and incorporation of written terms in such contracts by means of signature, reasonable notice, consistent course of dealing, and common knowledge of the parties. In addition to express terms, this chapter looks at how terms are implied, particularly terms implied by the courts—terms implied in law and terms implied in fact. There is discussion of the typical implied terms in sale and supply contracts in the B2B and B2C context. Finally, this chapter focuses on the principles governing the interpretation of contractual terms.

Chapter

Cover Contract Law

22. Breach of Contract and Termination  

This chapter begins with a definition of ‘breach of contract’ and then outlines the circumstances in which a breach of contract gives to the innocent party a right to terminate further performance of the contract. These include breach of a condition and breach of an intermediate term where the consequences of the breach are sufficiently serious. The chapter also considers the problems that can arise in deciding the status of a term which has not been classified by the parties as a condition, a warranty, or an intermediate term. It examines termination clauses and the significance attached to the good faith of the party who is alleged to have repudiated the contract. The chapter includes a brief comparison of English law with the Vienna Convention on Contracts for the International Sale of Goods and with the Principles of European Contract Law, and also addresses the question of whether an innocent party is obligated to exercise its right to terminate further performance of the contract, and considers the loss of the right to terminate. It concludes with a discussion of the law of anticipatory breach of contract.

Chapter

Cover Commercial Law Concentrate

10. Remedies of the buyer  

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter examines the various remedies that are available to a buyer under a contract of sale of goods where the seller is in breach of the sales contract. It considers the regime of remedies introduced by the Consumer Rights Act 2015 and discusses a range of remedies such as rejecting the goods, suing for non-delivery or late delivery of the goods, suing for damages following the seller’s breach of warranty, requiring the seller to repair or replace the goods, claiming from the seller a reduction in the price, or rescinding the contract. The chapter then explains the difference between breach of condition of the contract and breach of warranty.

Chapter

Cover Sealy and Hooley's Commercial Law

12. Performance of the contract  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter considers the duties of the seller to give a good title to the goods he sells and physically to deliver those goods to the buyer in accordance with the terms of the contract of sale. The chapter also examines the provisions of the Sale of Goods Act 1979 relevant to the sale of a limited title and the implied warranties as to freedom from encumbrances and quiet possession. Finally, it describes the statutory duties of the buyer to take delivery, to accept the goods, and to pay the price.

Chapter

Cover Card & James' Business Law

11. Discharge of the contract  

This chapter examines the procedures and processes involved in the discharge of a contract. It describes the situations under which a contract will become discharged and discusses the four methods of discharge, namely discharge by performance, discharge by agreement, discharge by breach, and discharge by frustration. This chapter also explains that there are cases where a contract will be automatically discharged with no possibility of continuance (such as where the contract is discharged by frustration) and there are those where the actions of one party may result in the other party being entitled to terminate the contract (for example, breach of a condition) or may simply entitle him to recover damages only (for example, breach of a warranty).

Chapter

Cover Poole's Casebook on Contract Law

5. Content of the contract and principles of interpretation  

Robert Merkin KC, Séverine Saintier, and Jill Poole

Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter examines what the parties to a contract have undertaken to do; that is, the terms of the contract, and the principles determining how the courts interpret the meaning of those contractual terms. It considers whether pre-contractual statements are terms or mere representations. The chapter then turns to written contracts, focusing on the parol evidence rule, entire agreement clauses, and the effect of signature on the contractual document. It also discusses oral contracts and incorporation of written terms in such contracts by means of signature, reasonable notice, consistent course of dealing, and common knowledge of the parties. In addition to express terms, this chapter looks at how terms are implied, particularly terms implied by the courts—terms implied in law and terms implied in fact. There is discussion of the typical implied terms in sale and supply contracts in the B2B and B2C context. Finally, this chapter focuses on the principles governing the interpretation of contractual terms.

Chapter

Cover Sealy and Hooley's Commercial Law

14. Remedies of the buyer  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter, the mirror image of the previous one, focuses on the remedies of the buyer who either does not receive goods or receives a defective delivery. The topic is relatively straightforward, largely restating principles of the general law of contract in the specialised field of sale of goods. The chapter concentrates on three forms of remedy: (1) damages for non-delivery, late delivery, or breach of warranty, (2) the recovery of money paid for a consideration that has totally failed or been validly rejected, and (3) specific performance and injunctions.