Classification of Contractual Terms as “Condition, ” “Warranty” or “Innominate” Terms Seems Random.
Classification of contractual terms as “condition,” “warranty” or “innominate” terms seems random.
The terms written in the statement above are considered to be unnecessary, or more precisely irrelevant. This essay will discuss how these words, instead, are important as contractual terms through explanations, definitions and examples. A contract is an agreement made by two different parties made through a promise granted by the law. A contract can be of two types or better, of two forms. The first one is the formal written contract also named specialty contract. The second one is the simple contract which is informal and is not written but made with any means (written or oral). When a contract is made there is an agreement that is simply represented by a seller that accepts a proposal together with the terms and conditions that the seller has proposed. Sometimes terms and conditions can be seen as unclear or could be misinterpreted by the seller, in this case resulting to void contracts.
Terms and conditions of a contract can be divided in two classes. The first class is represented by having terms that explain the root of that specific contract. In the situation if these terms were not met the party in question would then have the ability to abandon the contract and would then also have the right to sue the other party for the damages made. The second class is Warranty. This class is of less importance than the first but it’s still not really critical to the main objective of the contract. If this rule is broken it will eventually allow the party effected to entitlement of damages. Here’s an example to show the difference between the two classes in the contract. X approves to purchase from Z a used motor bike which is said to be in a very good condition. They agree a price and Z promises to ship it in 3-4 working days so he can make sure everything in the motorbike is up to the standard he agreed with X. Situation 1: If Z isn’t able to offer a suitably
The terms written in the statement above are considered to be unnecessary, or more precisely irrelevant. This essay will discuss how these words, instead, are important as contractual terms through explanations, definitions and examples. A contract is an agreement made by two different parties made through a promise granted by the law. A contract can be of two types or better, of two forms. The first one is the formal written contract also named specialty contract. The second one is the simple contract which is informal and is not written but made with any means (written or oral). When a contract is made there is an agreement that is simply represented by a seller that accepts a proposal together with the terms and conditions that the seller has proposed. Sometimes terms and conditions can be seen as unclear or could be misinterpreted by the seller, in this case resulting to void contracts.
Terms and conditions of a contract can be divided in two classes. The first class is represented by having terms that explain the root of that specific contract. In the situation if these terms were not met the party in question would then have the ability to abandon the contract and would then also have the right to sue the other party for the damages made. The second class is Warranty. This class is of less importance than the first but it’s still not really critical to the main objective of the contract. If this rule is broken it will eventually allow the party effected to entitlement of damages. Here’s an example to show the difference between the two classes in the contract. X approves to purchase from Z a used motor bike which is said to be in a very good condition. They agree a price and Z promises to ship it in 3-4 working days so he can make sure everything in the motorbike is up to the standard he agreed with X. Situation 1: If Z isn’t able to offer a suitably
References: Judge, S. (1999). Business law (2nd ed.). Basingstoke: Macmillan. Keenan, D. J., & Riches, S. (2007). Business law (8th ed.). Harlow: Pearson Longman. Richards, P. (2006). Law of contract (7th ed.). Harlow, England: Pearson Longman. Wishart, M. (2005). Contract law. Oxford [UK: Oxford University Press. "THE TERMS OF A CONTRACT." THE TERMS OF A CONTRACT. N.p., n.d. Web. 23 Oct. 2012. <http://www.lawhandbook.org.au/handbook/ch12s01s03.php>.