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Written Terms
Written terms can be incorporated into a contract in three
ways: by signature, by reasonable notice and by a previous
course of dealing.
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Implied terms
As well as the express terms laid down by the parties, further
terms may in some circumstances be read into contracts by
the courts.
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In British Crane Hire Corp Ltd v Ipswich Plant Hire Ltd
(1975) the owner of a crane hired it to a contractor, who was
engaged in the same sort of business. It held that the hirer was
bound by the owner’s usual terms, even though these were not
actually stated at the time the contract was made.
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Contractual terms
Contractual
Terms
In nominate
Conditions Warranties
Terms
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Condition
A term which is clearly an important one, in the sense that
a breach of it would have very significant consequences for
the innocent party, will usually be regarded by the courts as a
condition.
Where a condition is breached, the innocent party is
entitled to regard the contract as repudiated,
and so need not render any further performance, and can
also sue for damages
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Warranties
The word warranty usually describes a contractual term
which can be broken without highly important consequences
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Innominate terms
Also known as ‘intermediate terms’, these are terms which
can be broken with either important or trivial consequences,
depending on the nature of the breach. If the effects of the
breach are serious, the term will act as a condition; if they
are minor, it acts as a warranty.
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Exemption clauses
In some cases, one party to a contract may seek to avoid
incurring liability for certain breaches of the contract, or may
specify that their liability for such a breach will be limited,
usually to a certain amount in damages.
Therefore, Exemption clauses are terms that may be included
in contracts for the purpose of:
Limiting the extent of liability for damages(Limitation Clause)
Exclude the liability for damages (Exclusion Clause)
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