7 Types of terms within a contract
The terms found within a contract are clearly not all of the same
importance. For example, in the purchase of a car, if it is found after the
sale that a wing-mirror, which was to have been included in the sale, is
missing, then the person selling the car is in breach of a term. However, the
term is not a major one, and no doubt if the seller were to offer the money
to buy a new wing-mirror that arrangement would probably be quite
acceptable. On the other hand, if on completing the transaction, the buyer
went to drive away the car and discovered that the engine did not work at
all, then a far more serious term would be in breach. Money to replace the
engine would probably not be satisfactory in this case, and the buyer would
probably want to repudiate (or end) the contract altogether.
Conditions and warranties
The more important terms, those which are fundamental to the contract, are
called conditions. The less important ones are called warranties. The
difference between these two types of terms is illustrated by two cases
involving opera singers.
Important
term
(condition) or
Minor
term
(warranty)Poussard v Spiers and Pond (1876)
The plaintiff was engaged to sing the female lead part in a new opera.She
fell ill and missed the final rehearsals and first four performances. On
recovery she tried to take up her place, but the defendant refused to let her.
It was held that the defendant was entitled to repudiate as her action
amounted to a breach of condition.Blackburn J said, ‘Failure on the
plaintiff ’s part went to the root of the matter and discharged the defendant’.