there is no contract at all. This occurs where negotiations are ‘subject to contract’, which means the parties are not bound until they have reached an agreement

prevent the formation of a contract until the condition is satisfied.

suspend the operation of the contract, or to suspend some right, duty or consequence, which would otherwise spring from it until such time as the condition precedent is fulfilled

simple contractual undertakings this means a term, breach of which gives rise to a claim in damages but does not entitle a party to treat the contract as repudiated.

complex contracts this approach has been deemed too simplistic. not evaluate the term to discern what type it was but identified the consequence of the breach of the term;

the more severe the loss or damage, the more likely the breach would entitle the defendant to treat the contract as discharged.

The parties to the contract can stipulate whether a particular term is a condition or a warranty.

Where there is no express statement , the court can consider both the term itself and the consequences of breach. however, not always that the consequences of breach are not serious that the term is not a condition

term where ‘a promisee’s obligation to perform is dependent on the breach not giving rise to an event which will deprive the promisee of substantially the whole benefit which it was intended he should receive from the contract’.

argues that rather than create an additional category of term it would have been better to recognise that breach of a warranty would occasionally have serious consequences and where the breach was so serious, it would entitle the party to terminate the performance of the contract.