ACCA LW · Chapter 3 · Question 2 of 10
In Hong Kong Fir Shipping v Kawasaki Kisen Kaisha the court recognised 'innominate terms'. How is the remedy for breach of an innominate term determined?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) By the seriousness of the consequences of the breach: termination is available only if the innocent party is deprived of substantially the whole benefit of the contract
Explanation
An innominate (intermediate) term cannot be classified in advance as a condition or warranty. The court looks at the effect of the breach: if it deprives the innocent party of substantially the whole benefit, they may terminate; otherwise only damages are available. In Hong Kong Fir the ship's unseaworthiness caused delay that was not serious enough to justify termination.
More Contract terms MCQs
- Q4Under the Consumer Rights Act 2015, which of the following terms is implied into a contract for a trader to supply goods to a consumer?
- Q5Mrs Olley booked into a hotel and paid at reception. A notice in her bedroom excluded the hotel's liability for lost property. Her furs…
- Q6Lia signs a written contract to buy equipment without reading it. The contract contains an exclusion clause. There is no misrepresentation…
- Q7In a business-to-business contract, a supplier includes a clause excluding liability for death or personal injury resulting from its…
- Q8An exclusion clause is ambiguous and could be read in two ways, one of which favours the party seeking to rely on it. Which rule of…