Professional Documents
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Invitation to Treat.
2.3 Explain consideration, the rules of condition and the test of enforceability
To enforce a contract both parties must adhere to the rules of contract which will be binding on both individuals with consideration of
their (Rights of the third parties) Act 1999.
3.1 Analyse the difference between a condition and a warranty, using cases to exemplify the analysis.
The condition is the term of a contract that if not performed will go the heart of the contract. The breach of the condition will gives the
innocent party the right to end the contract if he or she chooses, in addition to the rights to claim damages for an damages.
A condition is regarded as a fundamental or important terminology in contract law, as this go to the root of the contract. However if there
is a breach of a condition, this will entitled the injured party to repudiate the contract as well as the right to claim damaged for the loss
he or she suffered.
On the other the warranty is a minor terms (term of lesser importance) of the contract if not perform will cause loss, but will not go the
heart of the contract. The breach of warranty will not necessarily end the contract but will give rise or entitled the injured party to claim
for damages occurred as a result of breach of warranty. This is based on Sale of Goods Act 1893.
Key examples as follow:
In the case of Arcos v Ronaasen, in which the timber staves were described as being half an inch in thickness were purchased for
making into a cement storage barrels. However the timber that was actually supplied was one sixteenth of an inch thicker than was
described but did not make any difference to the usefulness of the wood for making the barrels. This was classified as a breach of
condition in accordance to section 13 of the Sale of Goods Act 1893, therefore the buyer was entitled to reject the entire consignment.
However in accordance to, The Sale and Supply of Goods Act 1994, section 15A, and Sale of Goods Act 1979, sections, 13, 14, 15,
states that it would be unreasonable for the buyer to reject the goods, if the buyer does not deal as consumer. Based on this new
additional to the law (modernisation), which states the breach should not be treated as a breach of condition, but as a breach of
warranty. In the case however where the buyer does not deal as a consumer they have the right to reject the goods (for example in the
case above with the timber).
Furthers examples of cases on condition and warranty as follows:
Poussard v Spicers and Pond: This is the case where the claimant enters into a contract with the defendant so as to take the female
lead in a new operetta for three months season at the defendant theatre. The claimant fell sick and miss the first four nights of
rehearsals and performances as a result the defendant had to engage a substitute. The claimant turned up on the fifth night of the
performances and the defendant refuses her services and purported to terminate the contract. The claimant therefore sued the
defendants staying she had been wrongfully dismissed. The court concluded that her promise to perform from the opening night was a
condition.
Bettini v Gye.