ABSTRACT

When one looks at a transaction as a whole we have already seen that promises made in the course of negotiations and bargain can fall into one or other of two general categories. Promises outside of the contractual bargain are classed as representations while those inside are classed as contractual terms (cf Chapter 9 § 7(a)). These contractual terms are in turn classified into various types. Traditionally those that are fundamental to the whole contractual obligation are called ‘conditions’ and those that are merely accessory are called ‘warranties’.28 However, when these two different classes of term are put into the context of an actual breach of contract the classification can sometimes prove inadequate. It is not always practical to use the status of terms as a means of determining whether the breach is serious enough to allow an innocent party to repudiate the whole of the contract. Moreover, there is an added difficulty that the word ‘condition’ itself has a number of meanings depending upon the context within which it is used.29 Accordingly, other categories of term have appeared alongside the traditional conditions and warranties.