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Contract law

Types of terms

There are three types of terms:

 conditions

 warranties

 innominate terms.

The distinction between the types of terms is important because it determines the
remedies that may be available in the event of a breach.

Conditions

A condition is an important term going to the root of the contract.

Breach of the condition can result in damages or discharge or both.
Discharge entitles the innocent party to repudiate the contract and claim
damages.

Illustration 20 – Conditions

POUSSARD v SPIERS & POND 1876

Facts:

A soprano, Madame Poussard, agreed to sing in a series of operas for Spiers.
She failed to appear on the opening night and Spiers refused her services for
subsequent nights.

Held:

The obligation to appear on the opening night was a condition. Spiers was
entitled to treat the contract as at an end and was therefore not himself in breach
by refusing her services for the remaining nights.

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