Conditions, warranties and innominate terms
Contract terms are classified by importance: conditions (major terms whose breach lets the innocent party terminate and claim damages), warranties (minor terms giving damages only), and innominate terms (judged by the seriousness of the actual breach).
Last reviewed 14 June 2026
Whether a term is a condition or a warranty turns on the parties' intentions and its importance. Breach of a condition goes to the root of the contract (Poussard v Spiers & Pond), while breach of a warranty does not (Bettini v Gye).
For innominate terms the court looks at the consequences of the breach: only if it deprives the innocent party of substantially the whole intended benefit can they terminate (Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26).
Key cases
- Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26
- Poussard v Spiers & Pond (1876) 1 QBD 410
- Bettini v Gye (1876) 1 QBD 183
Frequently asked questions
What is the difference between a condition and a warranty?
Breach of a condition (a major term) lets the innocent party terminate the contract and claim damages; breach of a warranty (a minor term) gives damages only.
What is an innominate term?
A term not pre-classified as a condition or warranty; the remedy depends on how serious the actual breach is (Hong Kong Fir Shipping).