Contract Terms Flashcards
What are ‘terms’ in a contract?
- Bind both parties to perform
- Decided during negotiation
- Form part of the contract
What is ‘representation’ in a contract
- Shows that statements, fact and opinions are unlikely to form part of the contract
What are express terms?
- Things discussed
- Clearly added to the contract
- Statements made relating to a parties’ expertise, which are relied on by the other party, are likely to become a term
- Representation isn’t a term unless both parties are aware of it when making contract
What are implied terms?
- Can be implied by Fact or Statute
FACT - through custom = something done over a long time allows it to become an implied term
- through common trade = look at how things are commonly done in the specific industry
STATUTE - Type of term breached determines the remedy or resolution:
> Condition = gives injured party right to reject
> Warranty = claim for damages of loss
> Innominate Term = courts decide if level of injury
is sufficient for breach
What is implied term by FACT?
- Through custom = something done over a long time allows it to become an implied term
- Through common trade = look at how things are commonly done in the specific industry
What is implied term by statute?
- Type of term breached determines the remedy or resolution:
> Condition = gives injured party right to reject
> Warranty = claim for damages of loss
> Innominate Term = courts decide if level of injury
is sufficient for breach
What are the terms implied to supply goods?
- Under the Consumer Rights Act 2015
S9 = satisfactory quality
S10 = fitness for particular purpose
s11 = description of goods
What are the remedies for breach of terms implied to supply goods?
- Under the Consumer Rights Act 2015
s20 = short term right to reject
s23 = right to repair or replacement
s24 = right to price reduction or final right to reject
Why was the Consumer Right Act 2015 made?
To resolve issues between traders and consumers easily, quickly and cheaply
What is an exclusion clause?
- Inserted into a contract to reduce/eliminate liability
- Can either be:
> Incorporated into contracted by
parties
> Made by courts to protect party from
damage - If incorporated into contract then must question if:
> Parties had knowledge of it
> Reasonable steps were taken to bring
attention to it
What are the ways of exclusion clauses being in a contract
- Incorporated by parties when making contract
- Made by courts to protect party form damage
What is the impact of statute law on exclusion clauses?
Unfair Contract Terms Act 1977:
- Made to give consumers more protection
Void exclusion clauses:
- s2(2) = party cant reply on clauses that tried to exclude liability for death/personal injury
Valid if reasonable:
- s3 = businesses cant exclude liability for breach, or provide a vastly different performance, or no performance of the contract, UNLESS the actions satisfy requirements of reasonableness
Consumer Rights Act 2015:
- s31 = liability for goods cant be excluded or restricted
- s57 = liability for services cant be excluded or restricted
- s65 - the bar on exclusion or restriction of negligence liability
What is the rule for void exclusion clauses?
- s2(2) = party cant reply on clauses that tried to exclude liability for death/personal injury
What is the rule for valid if reaosnable?
Valid if reasonable:
- s3 = businesses cant exclude liability for breach, or provide a vastly different performance, or no performance of the contract, UNLESS the actions satisfy requirements of reasonableness
What does UCTA stand for?
Unfair Contract Terms Act
What year was the Unfair Contract Terms Act?
1977
What year was the Consumer Rights Act
2015
