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Difference between a breach of condition/warranty?

Forums › ACCA Forums › ACCA LW Corporate and Business Law Forums › Difference between a breach of condition/warranty?

  • This topic has 2 replies, 2 voices, and was last updated 12 years ago by jackbauer.
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  • October 25, 2012 at 2:39 pm #54872
    jackbauer
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    I’m struggling to understand the difference between a breach of condition and a breach of warranty.

    I understand that under both breaches, a claim for damages can be made, and a condition has the right to repudiate the contract, but what does that actually mean?

    Per Poussard V. Spiers, an opera singer absent and the opera company is entitled to claim damages and per Bettini V. Gye failure to attend rehersals and opera company entitled to claim damages, so what’s the difference? Which part is the repudiation?

    Thanks

    October 25, 2012 at 10:27 pm #106060
    alua
    Participant
    • Topics: 28
    • Replies: 37
    • ☆☆

    Hi Jackbauer,

    As per Kaplan textbook:
    “a condition is an important term going to the root of the contract. Breach can result in:
    – damages, or
    – discharge
    – or both
    Discharge entitles the innocent party to repudiate the contract AND claim damages.
    In Poussard v Spiers & Pond, where an opera singer failed to appear on the opening night, this was a breach of condition, which entitled the injuured party to treat the contract as ended.

    A warraty is a less important term, which is incidental to the main purpose of the contract.
    Breach of warranty results in damages only.
    In Bettini v Gye, where an opera singer failed to attend rehearsals, this was a breach of warranty. The injured party could NOT treat the contract as ended. They were entitled to damages only.”

    Hope this clarifies it.

    All the best,
    Alua

    October 26, 2012 at 12:06 am #106061
    jackbauer
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    I think I understand now. It is because failing to perform at the opening night is more serious than failing to attend rehearsals, therefore the injured party has the right to repudiate. Thank you for the clarification!

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