contract terms Flashcards
What does ‘contract terms’ mean.
- The things you have agreed to
- Terms of the agreement, if any of them and breached that can amount to a breach of contract
Couchman v Hill
the importance attached to the statement.
What is the difference between a term and a representation.
If something is very important to a contract it will be a term, if not it will be a representation.
Oscar v Chess v Williams
If the person making the contract has no special knowledge or skill, the other party should double check the information
Dick Bentley v Harold Smith Motors
they have a special knowledge and skill so the misinformation was a term because they should have known
Routledge v McKay
there was a time lag between making the contract and making the statement, it was considered a representation
Poussard v Spiers and Pond
if a person is to breach a condition of the contract it will end the contract completely.
This is also known as repudiation
Bettini v Gye
if a person is to breach a warranty it will not terminate the contract but the party can claim damages
What are inominate terms?
- a term that is not clearly a condition or warranty
- depends on the consequence
Hong Kong Shipping Co (innominate terms)
the outcome of the breach of term did not take away the entire purpose
What is an express term?
written documents or they’ve been spoken about
What is an implied term?
they are implied into the contract even if they have not been spoken about
What does it mean if a term is implied by common law?
previous cases have shown that judges have implied a term into a contract
What is the business efficacy test?
- is the term necessary?
- the moorcock: if the parties had thought about it (but never spoke or wrote about it) would they face agreed to it
What is the officious bystander test?
- Marks and Spencer PLC v BNP: something obvious that goes without saying
Shiela’s - its so obvious it foes without saying
What are terms implied by prior dealings?
Hillas v Acros - they have had a contract before so the terms of that contract will be in the new one
