Terms of contract - Essay Example

This is one of the expressed terms of the agreement. The terms of any contract define the obligations and promises in the contract. A party who fails to abide by the agreed terms of a contract is said to have breached the contract. Thus, if a term is breached the innocent party will invariably have a remedy for breach. However, it is necessary to classify terms because of the way the law deals with any breach not fulfilling the specified requirements of a particular term. Any term which is important or goes to the root of the contract is called a condition, see Poussard v Spiers.

1 Less important terms which does not go to the root of the contract is called warranties, Bettini v Gye.2 The consequential difference of the distinction is that a breach of condition gives rise to the possibility of repudiating the contract and claiming damages, although the injured party can carry on with the contract and claim damages rather than getting out of the contract altogether, whereas, a breach of warranty gives the right to claim damages only. In the present case the intention of the parties as to the use of Welsh plate is not clearly shown or expressed as a condition or warranty by the parties. . tted that the court is likely to find here that the Church has not been deprived substantially of the whole benefit because although welsh slate was not used the finished look was the same as the original 15th century roof and just as durable.

See, Investors Compensation Scheme Ltd v West Bromwich Building Society4, here Lord Hoffmann set out five principles on the interpretation of contractual documents. I advise the Church to claim damages. Second, with regard to the Issue of half replacement of the benches by Fixit, it might be possible for the Church to repudiate the contract with Fixit. In that if an obligation is entire (replace all the Benches) then it must be completely performed or the other party will be entitled to refuse to perform his side of the contract.

5 Fixit could argue that the contract is divisible and as such be paid on quantum merit. However, the Court of Appeal in Darkin v Lee6 stated that there is a material difference between work that was abandoned and work which was completed badly. It was stated in the case that where a builder has supplied work and labour for the creation or repair of a house under a lump sum contract, but has departed from the terms of the contract, he is entitled to recover for his services, unless (1) the work that he has done has been of no benefit to the owner; (2) the work that he has done is entirely different from the work which he has contracted to do; or (3) he has abandoned the work and left it unfinished.

It follows therefore that Fixit abandoned the work for another more lucrative work, and as such will not be able to recover anything and may further be liable for any necessarily incurred expenses and damages as a result. As Fixit has expressly or impliedly let the Reverend know before the time of completion is