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ACCA LW · Chapter 3 · Question 1 of 10

What is the main legal consequence of breach of a condition, as opposed to breach of a warranty?

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Reveal answer & explanation

Correct answer: B) The innocent party may treat the contract as discharged and also claim damages

Explanation

A condition is a term going to the root of the contract, so breach entitles the innocent party to terminate as well as claim damages (compare Poussard v Spiers). A warranty is a minor term whose breach gives a right to damages only (Bettini v Gye). Breach does not make the contract void ab initio.

All 10 questions in Chapter 3Contract terms MCQs with answers

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