Innominate contract term (English law)
An innominate or intermediate term is neither classified as a condition nor a warranty in advance for the relevant purpose. Whether its breach permits common-law termination for that breach depends on the seriousness of the consequences, including whether the innocent party is deprived of substantially the whole benefit of the contract. Damages may be available for recoverable loss even where common-law termination is unavailable. An express contractual termination right may have separate conditions.
Worked example
A service provider breaches a term that is innominate. The customer examines the actual consequences before claiming a common-law right to terminate for that breach, and separately checks any express contractual termination right.
Common mistake
Assuming every breach of an innominate term allows common-law termination regardless of its consequences, or overlooking a separately framed contractual termination right.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |