contents of contract notes

CONTENTS OF CONTRACT Dec03 Q5, Dec05 Q4
Sale of Goods Act 1957

Sec 12(2) SOGA 1957
Condition- term of a contract, which is so essential to the main purpose of the contract, that its breach would entitle the other party to terminate the contract.
Poussard v Spiers

Sec 13(1) SOGA 1957
Conversion fr condition to warranty
If the case amounted to a breach of condition, the choice lies with the plaintiff whether to treat it as a breach of condition (terminate the contract), or breach of warranty (claim damages)
Cheow Toh v Associated Metal Smelters Ltd

Sec 12(3) SOGA 1957
Warranty- may be regarded as term of the contract, which is not so essential to the main purpose of the contract, as the breach would only give rise to claim 4 damages, not a right to reject the goods or terminate the contract.
Bettini v Gye

Intermediate Term
Terms which cannot be classified as condition or warranty. The court would hv to look into the seriousness of the breach, n determine whether the plaintiff is entitled to terminate the contract or claim damages.
Hong Kong Fir Shipping Contract Ltd v Kawasaki Kisen Kaisha Ltd

Lord Diplok- Gravity of breach Test
If the breach is that it has deprived the innocent party substantially, the whole benefit that was 2 be derived fr the contract, this would the in the eye of a traditionalist a breach of condition, if it is otherwise, then it is a warranty.