Question

What is an ?innominate term??

Answer 1

innominate term

An innominate term is the middle point between a condition and a warranty. It is often considered the “no-mans land” between the two. Innominate terms, conditions, and warranties are types of promises made in contracts. If one of the parties in the contract doesn't fulfill these promises, it is considered a breach of contract, and that party can be held responsible for damages.

Defining a term as innominate requires some degree of interpretation and research. There is also circular logic, such as stating that an innocent party is allowed to end a contract if the serious breach is of an innominate term and saying that a term is innominate if it allows the contract to be ended for a serious breach.

Innominate Terms

If it is breached, an innominate term could have a wide range of consequences. Some innominate terms have small consequences, and others have much larger consequences. In the case of a breach, the court or an arbitrator will decide the impact of the term and if the contract is legally allowed to be terminated.

If the innominate term was so important that breaching it ruined the entire value of the contract for the innocent party, it is likely the court will allow the aggrieved party to end the contract. However, if the innominate term is ruled to be minor and has a small impact, the innocent party will likely only be allowed to sue for damages and not allowed to terminate the contract.