Topic 5

The contents of a contract

1.Explain the meaning of a 'condition' and a 'warranty' in contract law.

2Xavier has been told by his employer that he is to be sent overseas to work for 12 months. Xavier agrees to rent his flat to Bernadette for $100 per week while he is away. A lease is drawn up in the usual form. (These leases are fairly common and can be purchased from any real estate agent).

Prior to filling out the lease Xavier tells Bernadette that whilst he is 95% certain of going overseas there may be a last minute change of plans in which case the lease is to have no effect. Bernadette agrees. Xavier and Bernadette sign the lease that makes no mention of the fact that the deal is not to go ahead if Xavier is not sent overseas. Xavier is not sent overseas. Bernadette demands that she be given possession of the flat. Xavier denies that he is obliged to do so.

Advise the parties.