BTF1010 Study Guide - Final Guide: Fundamental Breach, Seakeeping, City Of Sydney
6 Jun 2018
School
Department
Course
Professor
Expressed and Implied Terms
Term: Contractual promise, legally binding. If broken – breach of contract
Representation: Statement of fact intended to induce the other party to enter into the contract but not a
contractual promise
The Parol Evidence Rule
• If the contract is entirely in writing, it is presumed that the written document is intended to be a
complete record of their agreement
Collateral contract
• Device to get around parol evidence rule (where contract has been reduced to writing)
• Three criteria
o Must not be inconsistent with main contract
o Must be promissory
o Consideration must be given by promisee
Express terms
Condition
• A term which “goes to the root of the matter, so that a failure to perform it would render the
performance for the rest of the contract”
• If breached: termination/damages
• Breach of a condition entitles the innocent party to treat the contract as repudiated and itself as
discharged from performance of all outstanding obligations under the contract
• Case: Associated Newspapers Ltd v Bancks
Warranty
• Regarded as lesser significance/importance than a condition
• A written guarantee, issued to the purchaser of an article by its manufacturer
• If breached: damages
• A breach of a warranty would only amount to damages, and the innocent party does not have the right
to repudiate the contract.
• A warranty is subsidiary to the main purpose of the contract therefore, its breach only allows a right to
sue for damages
• Case: Bettini v Gye
• The breach of contract did not go to the root of the contract, and was therefore not considered as a
breach of condition.
• Only remedy: Damages
Innominate term
Document Summary
Representation: statement of fact intended to induce the other party to enter into the contract but not a contractual promise. If the contract is entirely in writing, it is presumed that the written document is intended to be a complete record of their agreement. Collateral contract: device to get around parol evidence rule (where contract has been reduced to writing, three criteria, must not be inconsistent with main contract, must be promissory, consideration must be given by promisee. Condition: a term which goes to the root of the matter, so that a failure to perform it would render the performance for the rest of the contract . If breached: termination/damages: breach of a condition entitles the innocent party to treat the contract as repudiated and itself as discharged from performance of all outstanding obligations under the contract, case: associated newspapers ltd v bancks.
