Contract Terms^ Flashcards
Term
what makes up the agreement
Representation
statement
anything outside the terms
Term Or Representation
sometimes a statement amounts to a term if
- Importance attached: R imp to buy or not
- Special skills or knowledge: of P making the diff
- Time Lag: between making the contract and the statement
- Written Agreement: anything outside of it is not seen as imp enough
Oscar Chess V Williams
The statement was not a term, just a representation as the seller did not have special knowledge
Dick Bentley V Harold Smith Motors
The statement is a term as the seller should have had special knowledge to be correct
Routledge V McKay
if there is a gap between making the statement and contract then it will likely be a representation
Condition Terms
The most important part of the contract/ at the heart of the contract
Repudiation
- if breached it will end the contract completely
Poussard V Spiers & Pond
Didn’t complete the condition so the contract repudiated
Warranty Terms
Minor term that does not end the contract
But one party can claim damages if the other breaches a warranty
Bettini V Gye
considered just a warranty as didn’t breach the central condition
Innominate Terms
In the middle of warranty and condition
Depend on the consequences to decide which one it is
Hong Kong Shipping Co
Considered only a warranty as didn’t take away the whole benefit of the contract
Express Terms
specifically agreed and in the contract
Common Law Application
Implied terms of contract
Through business efficacy
- The Moorcock
Parties forgot to speak about but if they have, they would have agreed
and the officious bystander test
- “Something so obvious, it goes without saying”
By custom or prior dealing with the parties
Statute Law Application
implied terms of contract
Consumer Rights Act 2015
Passed to protect the consumer
Implied different terms to a contract
- The right to a satisfactory quality: the standard that a reasonable person would consider satisfactory
- The right to fit for purpose: the consumer told the seller the purpose for the buy, so expect the item to be fit for it
- The right relating to description: whatever you are buying must match the description (Beale V Taylor)