(c) Warranties
A warranty is a subsidiary obligation which is not vital to the overall agreement, and in relation to which failure to perform does not totally destroy the whole purpose of the contract. Breach of a warranty does not give the right to terminate the agreement. The injured party has to complete their part of the agreement, and can only sue for damages. As regards warranties, the classic case is Bettini v Gye (1876) in which the plaintiff had contracted with the defendants to complete a number of engagements. He had also agreed to be in London for rehearsals six days before his opening performance. Due to illness, however, he only arrived three days before the opening night, and the defendants refused his services. On this occasion it was held that there was only a breach of warranty. The defendants were entitled to damages, but could not treat the contract as discharged.
The distinction between the effects of a breach of condition as against the effects of a breach of warranty was enshrined in s.11 Sale of Goods Act 1893 (now SGA 1979). For some time it was thought that these were the only two types of term possible, the nature of the remedy available being prescribed by the particular type of term concerned. This simple classification has subsequently been rejected by the courts as too restrictive, and a third type of term has emerged: the innominate term. |
