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date: 09 December 2022

innominate terms (intermediate terms) 

Source:
A Dictionary of Business and Management
Author(s):

Jonathan Law

Terms of a *contract that cannot be classified as a *condition or *warranty. The parties to a contract may label the terms of the contract as either conditions or warranties and those labels will usually be respected by the courts provided that the result is reasonable. Similarly, certain terms have traditionally been treated as conditions or warranties even though they have not been labelled as such (for example, time clauses in mercantile contracts are to be treated as conditions). Innominate terms are those that will not fit the above categories. The remedy for breach of an innominate term will depend on whether or not the breach is of a fundamental nature, i.e. that the injured party has been deprived of substantially the whole of the benefit of the contract. If the injured party has been so deprived, he or she will be entitled to treat the contract as repudiated and claim damages. If not, the injured party will be entitled to damages only. ... ...

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