Conditions, warranties & innominate terms … bite size

Different terms in a contract will have different levels of importance. The breach of certain terms will be more problematic than others. Contract terms are broadly categorized into conditions, warranties and innominate terms.

Conditions – These are important terms. If breached it would have significant consequences for the innocent party.

Warranties – These are less important. These terms can usually be broken without highly important consequence.

Innominate terms or intermediate terms – These are terms which can be broken with either important or trivial consequences. The consequences vary depending on the nature of the breach. If the consequences are serious, the term will act as a condition; if they are no, the term will act as a warranty.

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