Classification of Contractual Terms as “Condition, ” “Warranty” or “Innominate” Terms Seems Random.
1049 Words5 Pages
Classification of contractual terms as “condition,” “warranty” or “innominate” terms seems random.
The terms written in the statement above are considered to be unnecessary, or more precisely irrelevant. This essay will discuss how these words, instead, are important as contractual terms through explanations, definitions and examples. A contract is an agreement made by two different parties made through a promise granted by the law. A contract can be of two types or better, of two forms. The first one is the formal written contract also named specialty contract. The second one is the simple contract which is informal and is not written but made with any means (written or oral). When a contract is made there is an agreement that is…show more content… Another example would be if after a month that X has been using the motorbike for it turned out that were many faults with the motorbike that weren’t evident before. The motorbike wouldn’t start sometimes so there might have been an issue with the engine. Meaning X will have to take it to a motorbike repair shop and it will cost him money to solve the issue. X would then think about dismissing the contract and suing Z. Nevertheless terminating the contract wouldn’t be an option then and the only option Z would have is to claim damages from X. The reason why X couldn’t terminate the contract is because he wasn’t fully dispossessed of what he was promised for. The legal action of such breach would depend on the intention of the seller and classifying it under either condition or warranty, unless it was expressed clearly in the contract itself. If at the time of purchase if Z actually knew about the faults and bad condition the motorbike he was selling to X was in and still managed to sell the motorbike under a contract which showed otherwise. Then X would have the complete right to reclaim damages and terminate the contract. This is only acceptable because of the nature of the situation which showed that the breach happened while the seller was aware that he’s not meeting the contract terms.
Judge, S. (1999). Business law (2nd ed.). Basingstoke: Macmillan.
Keenan, D. J., & Riches, S. (2007). Business law (8th ed.). Harlow: Pearson Longman.