Termination By Subsequent Agreement

The test used to determine the terms to be classified as conditions was defined in Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (note that the test is provided by the Jordanian CJ of the Supreme Court and not by the Supreme Court): § A time limit is considered a condition if it turns out to be a condition, as shown by the objective intentions of the party, that the party considers it so important that it did not conclude the contract without the certainty that it was strictly observed. In addition to the classification test of a condition, Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd makes other important general points of termination by breach: § A breach of a condition entitles the injured party to termination, regardless of its severity. § A breach of a condition does not oblige the injured party to terminate, it may decide to continue the performance of the contract. . . .