ICAEW BL · Chapter 3 · Question 2 of 10
Brook Events hires a marquee for a client's conference. A term requires the supplier to deliver the marquee 'freshly cleaned'. It arrives with some dirty side panels, which Brook's staff clean in an hour at a cost of £150, and the conference goes ahead normally. The court classifies the cleaning term as a warranty. What follows?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Brook may claim damages for the cost of cleaning but may not terminate the contract
Explanation
A warranty is a term subsidiary to the main purpose of the contract. Its breach entitles the innocent party to damages only, not to treat the contract as discharged. Brook can therefore recover its £150 loss but must still pay the hire charge. A term whose breach always allows termination is a condition. A warranty is a term of the contract, unlike a mere representation, and liability for breach of contract is strict, so the supplier's state of mind is irrelevant.
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