3. Terms

Question 1

Bannerman v White

Answer 1

Statement may be regarded as term if it is o important that party would not have entered into a contract but for statement

Question 2

Routledge v McKay

Answer 2

Lapse of time between statement and signing of contract - representation

Fact statement not included in written contract - representation

Question 3

Birch v Paramount Homes

Answer 3

Statement held to be term in spite of not being included in written contract

Question 4

Oscar Chess v Williams

Answer 4

Statement made to car dealers as to age of car held not to be a term

Question 5

Dick Bentley v Harold Smith

Answer 5

Statement made by car dealer to layman as to car’s mileage held to be a term

Question 6

Schawel v Reade

Answer 6

D assured P as to fitness of horse being sold for stud purposes + expressly told need not make any examinations himself

Term

Question 7

Hopkins v Tanqueray

Answer 7

In similar circumstances, statement about horse not term

Distinguish: auction sale + concluded day after statement

Question 8

J Evans v Andrea Merzario

Answer 8

Oral assurance that goods will be carried below deck held to be part of contract

Question 9

City and Westminster Properties v Mudd

Answer 9

Oral promise that D would be able to continue to sleep in back of shop held to be collateral contract overriding express terms of contract declaring he would not be permitted to do so

Question 10

Shanklin Pier v Detel Products

Answer 10

Collateral contract between 1 of parties to main contract and 3P

Question 11

Axa Sun v Campbell

Answer 11

Courts will resist reliance on entire agreement clause is where this is seen as attempt to dodge liability for misrepresentation

Question 12

Interfoto v Stiletto

Answer 12

Onerous clause held not to be a term - should be brought to other party’s attention

Question 13

British Crane Hire v Ipswich Plant

Answer 13

Owner of crane sought to rely on term that is common in trade but not expressly stated

Held: term incorporated by common trade custom

Question 14

The Moorcock

Answer 14

Contract for mooring ship at jetty held to include implied term that berth would be safe

Question 15

Liverpool City Council v Irwin

Answer 15

Lease for apartment in high-rise tower block must of necessity include obligation on the landlord to maintain lifts, stairs etc.

Question 16

Sale of Goods Act 1979, s 12(1)

Answer 16

Implied terms as to title - condition that seller has right to sell goods

Question 17

SGA 1979, s 13(1)

Answer 17

Implied term that goods will correspond with description in contract

Question 18

SGA 1979, s 14(2)

Answer 18

Implied term that in business context products are of satisfactory quality

Question 19

SGA 1979, s 14(3)

Answer 19

Where in business context seller makes known purpose of good, there is implied term that those goods are suitable for that purpose

Question 20

SGA 1979, s 15(2)

Answer 20

Where sale by sample, two conditions are imputed into a contract - (a) bulk will correspond with sample in quality, (b) goods will be free from defect

Question 21

UCTA 1977, s 6(1)

Answer 21

Implied undertaking as to title cannot be restricted or excluded

Question 22

UCTA 1977, s 6(2)

Answer 22

Implied undertakings as to description, quality, fitness for purpose cannot be excluded against any person acting as a consumer

Question 23

UCTA 1977, s 6(3)

Answer 23

In the case of non-consumers, any term purporting to restrict liability in respect to above is subject to requirement of reasonableness

Question 24

Supply of Goods and Services Act 1982, ss 2-5

Answer 24

Same principle applied to transfer of property in goods

Question 25

SGSA 1982, ss 7-10

Answer 25

Same principle for hire of goods

Question 26

SGSA 1982, ss 13-15

Answer 26

For supply of services, implied term that
Service will be carried out with reasonable care and skill - s 13
Within reasonable time - s 14
Pay reasonable charge - s 15

Question 27

SGSA 1982, s 11

Answer 27

Transfer or hire of goods - allows supplier to contract out subject to UCTA 1977

Question 28

SGSA 1982, s 16

Answer 28

Contract for supply of services - supplier may contract out, subject to UCTA 1977

Question 29

Poussard v Spiers

Answer 29

Obligation on actress to perform from first night of show is condition

Question 30

Bettini v Gye

Answer 30

Obligation on singer to take part in 6 days of rehearsal prior to opening of show is a warranty

Question 31

Schuler v Wickman

Answer 31

Clause describing itself as ‘condition’ is in fact warranty

Question 32

Hong Kong Fir v Kawasaki

Answer 32

Innominate terms - if breach has minor effect, damages only; breach with more serious effects will allow innocent party to treat contract as repudiated

Question 33

The Mihalis Angelos

Answer 33

Court anxious to limit HKF to specific type of commercial clause (‘expected readiness to load’ clause) in interest of certainty

Question 34

The Hansa Nord

Answer 34

HKF principles applied also to other types of clause