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Essay / Conditions of Contract - 868
Conditions of Contract Works cited not included Conditions of Contract are statements which form part of a contract. Parties to a contract will normally be required to perform any promises they have agreed to, and failure to keep those promises, or unsatisfactory performance, may lead to an action for breach of contract. Some statements, however, are not part of a contract, even though they may have led the other party to enter into the contract in the first place. These pre-contractual statements are called representations. The consequence of such statements being found to be false is an action for misrepresentation and not an action for breach of contract. The main consequence of this distinction is that each of these actions offers different solutions. It is therefore important to decide precisely which promises are included in the contract. Types of contractual clauses Once it is decided that a statement is a clause, rather than a mere pre-contractual representation, it is further necessary to decide what type of clause it is, in order to determine what remedies are available in the event of a violation. Conditions can be classified into one of three types. (1) Conditions A condition is a fundamental part of the agreement - it is something that goes to the root of the contract. Breach of a condition gives the injured party the right...... middle of paper ....... (2) Conditions implied by custom An agreement may be subject to customary conditions, which shall not necessarily be expressly stated by the parties. For example, in Hutton v. Warren (1836), it was held that customary usage allowed a farmer to claim an allowance for seed and labor when he left his tenancy. Custom cannot, however, override the express terms of an agreement (LesAffreteurs v. Walford (1919)).(3) Conditions Implied by the CourtsOn occasion, the Court will presume that the parties intended to include a condition that is not expressly stated in the contract. The court will only do so when necessary to give commercial effectiveness to the contract. Thus, in The Moorcock (1889) it was held that there was an implied warranty in the contract that a place of anchorage should be safe for a ship using it..