Distinguish between a major breach and a minor breach
Distinguish between a major breach and a minor breach?
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In distinguishing between a major breach and a minor breach, the law distinguishes among three types of contractual terms. A condition is “an essential term of a contract,” while a warranty is “a non-essential term.” Breach of a condition would deprive the other party of the expected benefit of the contract, while breach of a warranty would not. An intermediate term is a “wait-and-see” term; depending on the circumstances, breach of it may or may not substantially deprive the innocent party of the expected benefit of the contract.
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1. GML owns 92% of the issued shares in Explorer Ltd. The remaining 8% of the shares are held by five individuals, including a Mr Owen who owns 0.5% of the issued shares. Mr Owen is a high profile individual who has at times been critical of the Chinese government’s activities in the South China
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