1. Use of conditions and Warranties in establishing a contract
1.1. Conditions
1.1.1. Certain obligations, terms, and provisions imposed by both parties
1.1.2. Are indispensable, and they need to be satisfied
1.2. Warranty
1.2.1. A written guarantee that a seller issues to a buyer regarding particular claims.
1.2.2. The claims are to be factual and valid.
2. Definition
2.1. Law of Contract seeks to determine and define the promises to which legal effect is accorded by the law, whether by way of enforceability or by way of recognition of a duty of performance.
3. Terms used in contracts
3.1. Expressed Terms: communicated by word of mouth or in writing.
3.1.1. Conditions: vitally important, breaches can lead to damages & repudiation
3.1.2. Warranties: Breaches entitle injured to damages only, no termination
3.1.3. Innominate Terms – can be either depending on how much benefit is denied.
3.2. Implied Terms: not actually stated but introduced into the contract by implication
3.2.1. By Custom – customary terms & practices employed in trade usage
3.2.2. By Courts – To do this, terms must be (according to Legatt J):
3.2.2.1. I. so obvious it goes without saying &
3.2.2.2. II. necessary to give business efficacy to commercial dealings.
3.2.3. By Statute- Exists to fill gaps otherwise ignored by implying terms. Such as:
3.2.3.1. I. B2B Contracts
3.2.3.2. II. B2C Contracts