Why Was the Plaintiff Unsuccessful in the Case of Poussard

question 40

Multiple Choice

Why was the plaintiff unsuccessful in the case of Poussard v Spiers & Bond [1876] 1 QBD 410?

• A)The term was an innominate term,and the breach was not serious enough to entitle the other party to repudiate.
• B)The term which had been breached was a warranty because it was subsidiary to the main purpose of the contract.
• C)The term which had been breached was a condition because the breach had a serious effect on the contract.
• D)The term which had been breached was a condition because the term was essential to the contract and the other party would not have entered into the contract without it.

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Definitions:

Operating Income

The profit realized from a business's operational activities, calculated before interest and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profit by increasing sales.

Variable Costs

Charges that shift in alignment with the volume of production or service tasks.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profit generated from its core operations excluding the effects of financing and taxes.