The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:
Claims for breach of contract often involve analysis of whether or not the term alleged to have been breached is one which allows the innocent party to:
terminate the agreement for breach and claim damages (or to affirm the contract, despite the breach, and claim damages); or
This will depend on whether the term in question takes effect as a condition or a warranty or whether the nature and consequences of the breach are sufficiently serious as to constitute a repudiation of the contract. This is the function of the ‘classification of terms’ in contract cases.
For guidance on the distinction between terms and representations and when and how express and implied terms may be incorporated into a contract, see Practice Notes:
Contract interpretation—when is a statement a representation or a contractual term?
Contract interpretation—express terms in contracts
Contract interpretation—terms implied by fact
Contract interpretation—terms implied by law
Contract interpretation—terms implied by custom and usage
Contractual terms are often classified into one of three types:
conditions—breach of which entitles the innocent party to (Schuler v Wickman Tool):
terminate the contract, regardless of the nature of the breach, and claim damages or
affirm the contract despite the breach and claim damages
warranties—breach of a warranty does not entitle the injured party
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234