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Lord Justice Dipplock, by his judgment in Hong Kong Fir Shipping Co V Kawasaki Kisen Kaisha1, put into effect a new way of examining the cases for the breach of a contractual term and the rights of innocent party to terminate the contract or to sue for damages. Since then, the principle was the classification of the terms into 'conditions' and 'warranties'. After the leading case of Hong Kong Fir Shipping, a new intermediate level of terms category, the 'innominate terms', came in to give the courts more flexibility to judge with fairness. The classification of terms can be made in three different ways2. The first one is by Parliament. The Sale of Goods Act 1979 in many sections3 classifies the terms as 'conditions', giving guidelines to the courts. A decision based on the above Act (its previous version of 1893) was this of Arcos Ltd V Ronaasen and Sons4 when...

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