End-of-chapter questions: Answer Guidance 25.1

Conditions, warranties, and innominate terms

One key issue here is whether ‘condition’ is used to mean ‘condition’ in the technical sense, so you need to discuss Schuler (L) AG v Wickman Machine Tool Sales Ltd [1974] AC 235. That case is clearly distinguishable here, but even so it is a question of interpretation (see Chapter 12). If it is a condition, then Brody can clearly terminate for breach. If it is not, then the term is an innominate term. You would then need to consider whether the breach is ‘sufficiently serious’ to allow Brody to terminate. Using the facts given is important: 2 deliveries out of 8 are late, but that is only 2 out of a possible 24 instalments. Even if you conclude that the late delivery was not a good reason to terminate the contract, you might consider that the termination is still valid because Brody could have terminated due to the stones if the sugar (SGA s14; The Mihalis Angelos).

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