8 Flashcards
What’s the terms of contract?
Statements, particulars, promises that form part of a contract.
Name 2 issues to consider with terms of contract
- Representation or misrepresentation
- Express/Implied terms
- Types of Term
- Exclusion clauses
What’re representations?
REPRESENTATIONS are statements or promises that DO NOT form part of a contract.
What is MISREPRESENTATION?
A representation that turns out to be false and was relied upon to enter in a contract.
What 3 things can misrepresentation be and thus lead to?
Fraudulent + Negligent - Damages and/or rescission
Innocent - Rescission only
What’re express terms?
Terms specifically agreed between the parties
- Usually written into contract for clarity
- Includes verbal agreement, hard to prove.
What’re implied terms?
The absence of express terms meaning the law implies certain terms
- Certain terms will exist even if parties don’t know
- Implied terms are legally binding on parties
Name 2 ways terms are implied into contracts
- By The Courts
- By Statute
How do the courts imply contracts?
Judges can have implied terms into contracts where
- Clear intention of the parties for the term to exist
- Customary for term to exist - trade/industry
- Necessary to make contract sensible or complete (The Moorcock 1889)
Explain the Moorcock 1889 Case
*Ask Tim
How are terms implied by statutes?
Via legislation - usually made for the protection of consumers or vulnerable parties to a contract
Brought in when there’s inequality to relative bargaining power of parties.
Name 2 examples of terms implied by statute
Consumer Rights Act 2015
Unfair Contract Terms Act 1977
Consumer Credit Act 2006
Employment Rights Act 1996
What 3 ways are terms categorised?
Conditions
Warranties
Innominate terms
Why are there 3 ways to catergorise terms?
For the courts to be able to determine the importance of a term and have the appropriate remedy.
What’re conditions in relation to the how terms are categorised?
Most important contract terms
- At the root of contract
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