Status of Terms in Warranties and Contracts

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There are many different status of terms: warranties conditions and innominate term. The law seeks to classify legal terms according to their importance, with implication that a breah for the innocent party varying according to the type of term breached for these purposes.

A condition is an essential term. It goes to the root of the contract, and is fundamental. A breach such term entitles the innocent party to repudiate the contract, so need not render any further performance, as well as claim for damages.

In the case of Bunge Corp v Tradax Export, the seller contracted to sell to ship 5000 soya bean meal to the buyers. They were supposed to be given 15 consecutive days of notice, but was only given 13. The buyers obligations to give a notice was held to be a condition because it would be unfair to depricv the seller of the notice.

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There are certain types of terms that the law classify as conditions. For example the Sale of Good Act describe certain terms as conditions and it should never be breached. For example, goods must always match the description, always be of staidfactory quality, good bought in bulk must fit the sample. It should follow that in the event of a breach, a buyer should be able to rescind the contract. This protects the buyers from malicious sellers that have an unfair bargaining position over them

In the case of Mihalis Angelos, the owner of a ship hired it out to ...

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