As a copy editor with experience in SEO, I am pleased to present this article on the “Types of Terms of Contract.” Contracts are important legal documents that outline the terms and conditions of an agreement between two parties. Understanding the different types of terms of contract is essential for ensuring that both parties understand their obligations and rights.
Express Terms
Express terms are the most common type of terms of contract. These are the terms that are explicitly stated in the contract, either in writing or verbally agreed upon. Express terms can include things like the price of the goods or services being sold, the payment schedule, and the delivery date.
In many cases, express terms are negotiated by the parties involved in the contract. For example, a client may negotiate the price of services with a business before agreeing to hire them. Once these terms are agreed upon, they become express terms of the contract.
Implied Terms
Implied terms are not explicitly stated in the contract but are still legally enforceable. These terms are usually inferred based on the circumstances surrounding the contract. Implied terms can be divided into two categories: terms implied by fact and terms implied by law.
Terms implied by fact are terms that are inferred from the circumstances surrounding the contract. For example, if a person hires a builder to construct a kitchen, it is implied that the builder will carry out the work to a reasonable standard.
Terms implied by law are terms that are implied into contracts by statute or common law. For example, the Sale of Goods Act 1979 implies terms into contracts for the sale of goods, such as the requirement that the goods must be of satisfactory quality and fit for purpose.
Condition, Warranty, and Innominate Terms
Contracts can also be categorized based on the type of terms they contain. The three types of terms are condition, warranty, and innominate terms.
Condition terms are the most important terms of a contract. If a condition is breached, the injured party has the right to terminate the contract and claim damages. For example, if a seller fails to deliver goods on the agreed-upon delivery date, the buyer may terminate the contract and claim damages.
Warranty terms are less important than condition terms. A breach of warranty does not give the injured party the right to terminate the contract but only to claim damages. For example, if a seller fails to provide the buyer with a warranty for goods sold, the buyer may claim damages but cannot terminate the contract.
Innominate terms are those that are neither condition nor warranty. The consequences of a breach of innominate terms depend on the severity of the breach, i.e., whether it deprives the injured party of substantially the whole contract. For example, if a seller delivers goods late, the consequences may depend on the circumstances of the delivery and whether it was essential to the buyer.
Conclusion
In conclusion, understanding the different types of terms of contract is essential for ensuring that both parties to a contract understand their obligations and rights. Express terms, implied terms, condition terms, warranty terms, and innominate terms are all important aspects of a contract that should be carefully considered before entering into any agreement. By understanding these terms and their implications, parties can avoid disputes and misunderstandings in the future.