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Scope and content: Classification of terms


ClassificationThere are a number of ways terms may be classified which may impact upon remedies available for breach. For example:

  • terms classified as conditions will, if breached, allow the innocent party to terminate the contract;
  • terms classified as warranties (less important terms) will generally only permit the innocent party to claim damages for breach.

In some cases it will not be easy to classify terms as either conditions or warranties and they may instead by classified as intermediate terms. When intermediate terms are breached the remedy will depend on the seriousness of the breach itself.

Given the impact on remedies, it is important to understand how courts will classify the terms of a contract.



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Implied terms

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