OCR A2 Law - The Law of Contract - The Importance of 'Classifying Terms' (1)

  • Created by: Majid
  • Created on: 27-04-13 20:59

The Importance of 'Classifying Terms' (1)

Intro/Definiton: A term of the contract explains the duties and obligations each party assumes. These can be expressly stated, and judges will usually give effect to them so long as they're incorporated, or if not, terms can be implied via the judges by common law (i.e. business efficacy, officious bystander, previous dealings) via custom or via statutes.

Some terms attach more importance than others, depending on their classification. The courts have classified terms traditionally in 2 ways.

Conditions: Major term of a contract, a breach of which will allow innocent parties to 'repudiate and/or claim damages'.

CASE: "Poussard v Spiers". An actress had a contract to appear as a lead role but failed to turn up and gave the role to the understudy. The actress sued for breach of contract.

HELD: Proudcer was allowed to repeudiate as she breached the contract.

AO2: It's important to have conditions in a contract and create certainty for both parties as they know thier positions if a breach should occur. In this case Poussard was unable to sue as allowing her to do so would mean that only she could play the main role. The consequences of her not being there would have resulted in the producers calling the opera off. Further serious consequences would have been unfair.

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