Law About Conditions,warranties and Innominate Terms

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of conditions of the intention to rescind the contract. The injured party may decide to continue to perform the contract and sue for damages.

Case: Lombard North Central plc v Butterworth (1987) 1 QB 527

Facts: The parties made a contract for the hire of a computer. Clause 2(a) of the contract provided that punctual payment of each quarterly rental was to be of the essence of the contract.

Failure by the defendant to pay any one instalment gave the plaintiffs a right to terminate the contract by retaking possession of the goods whereupon the defendant became liable to make good to the plaintiffs the loss of the whole transaction. Therefore the plaintiffs were entitled to damages for the sum claimed.

Clause 2.4

“Shall” this word means

1) an imperative command as in "you shall not kill."

2) in some statutes, "shall" is a direction but does not mean mandatory, depending on the context.

It is expressly stated that the lessee shall disconnect the power supply to the machine at the close of business each day. There is a breach of condition Lee has left the power supply remain connected overnight sometimes.

A breach of condition will be treated as a breach of warranty. The injured party may decide to continue to perform the contract and sue for damages.

Case: Poussard v Spiers & Pond [1876] 1 QB 410

Facts: The plaintiff, a singer, failed to appear for her scheduled performances. Held: It was a breach of condition, because the basic purpose of her contract for singing was broken. Therefore, the plaintiff’s contract of singing was terminated.

Clause 4.7

The lessee told that it is will notify Nick but Lee repaired minor fault by himself. Warranties are minor terms of a contract which are not central to the existence of the contract. This is a warranty because the lessee uses “will” this word.

The wrapping of the present could be construed as collateral to the main purpose of the machines. If this is the case, the breach of warranty gives Nick no right to terminate the contract but only a remedy in damages.

Case: Bettini v Gye [1876] 1 QB 183

Facts: A singer promised to participate in rehearsals six days before the performance, but failed to turn up until two days before the performance date. Held: It was a breach of warranty. His contract was not terminated since the basic purpose of the contract for singing could still be fulfilled. But he was sued for damages.