Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd
[1962] 2 QB 26
Ratio Decidendi
Not all terms of a contract are conditions or warranties. Some terms are 'innominate' (intermediate) terms. The remedy for breach of an innominate term depends on the seriousness of the breach: if it deprives the innocent party of substantially the whole benefit of the contract, they may terminate; otherwise, only damages are available.
Fapte
A ship was chartered for 24 months. The charterers were given a seaworthy vessel, but the engine crew were incompetent and the ship needed extensive repairs (about 20 weeks). The charterers purported to terminate the contract.
Rezumatul hotărârii
The Court of Appeal held that the seaworthiness term was an innominate term. The breach, while serious, did not deprive the charterers of substantially the whole benefit of the contract (the ship would still be available for 17 months). The charterers were not entitled to terminate but could claim damages.
Citate cheie
"There are many contractual undertakings of a more complex character which cannot be categorised as being 'conditions' or 'warranties'... the legal consequences of a breach of such an undertaking... depend upon the nature of the event to which the breach gives rise."
— Diplock LJ
Tratament ulterior
Landmark case establishing the category of innominate terms. Consistently followed and applied.