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#contract #law #terms
The traditional distinction between conditions and warranties is no longer regarded as exhaustive. In Hong Kong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 the Court of Appeal held that there are many terms which, at the outset, are neither conditions nor warranties but are of an innominate or intermediate nature. A breach of such a term, if it has a minor effect, will allow the innocent party to claim damages only. A breach with more serious consequences will allow the innocent party to treat the contract as repudiated and claim damages. This represents a more flexible approach and allows the court a good deal of leeway when dealing with cases where the purported innocent party is attempting to use a trivial breach in order to extract themselves from a contractual agreement which is no longer commercially advantageous.
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