Determining the Terms of the Contract Flashcards
When is a statement more likely to be a term of a contract (instead of a representation for example)? Think of 2 examples
Statement is of:
- fundamental importance to the party to whom it’s being made
- statement maker is an expert of the subject matter
A condition is a term that is so _______ that it goes to the _______ of the contract. If it’s breached, the contract does not ______
fundamental, root, work
What options does a non-breaching party have if the other breaches a condition?
The innocent party can terminate and sue for damages
A warranty is a term which is _________ or collateral to the main terms of the contract
incidental
What options does a non-breaching party have if the other breaches a warranty?
The innocent party may sue for damages (no right to terminate)
What’s the name given to a term which cannot be defined as a condition nor a warranty?
Innominate term
If an innominate term is breached, the court will look at the _____ of the breach to determine the appropriate remedy.
effect
In the event of an innominate term breach, if the non-breaching party will ________ lose the _______ _____ of the contract, it will be treated like a _________
substantially, whole benefit, condition
In what type of contracts will time usually be presumed to be of the essence?
Commercial contracts
Terms can be incorporated into a contract if the parties have _______ of them
notice
When does the Sale of Goods Act 1979 apply?
Whenever goods are sold
What are the four conditions that the SGA 1979 implies?
- Title
- Match description
- Satisfactory quality
- Fit for any special purpose
Which implied condition under SGA 1979 cannot be excluded?
Title
When can the other implied conditions (quality, fitness, and description) under SGA 1979 be excluded?
Only by an express contract term that’s reasonable
When does the Supply of Goods and Services Act 1982 apply?
Contracts for services supplied by a business and to goods supplied in relation to the service
For supply of services contracts, the SGSA 1982 implies an _______ term that the supplier will carry out the service in a reasonable _____ and with reasonable ____ and ______
innominate, time, care, skill
For the supply of goods contracts, the SGSA 1982 implies terms similar to those under ___ ______. A contract can only exclude these implied terms when it is __________ (except title)
SGA 1979, reasonable
When does the Consumer Rights Act 2015 apply?
To sales contracts between a trader and a consumer (B2C transactions)
What 3 terms are implied under the CRA 2015 for the supply of goods?
- Match description
- Satisfactory quality
- Fitness for a particular purpose
Are implied terms (relating to quality, fitness, and description) under CRA 2015 that are excluded or limited in a contract enforceable?
No - they are prohibited and so will be automatically void
In service contracts, the CRA 2015 implies which four terms relating to services?
- Carried out with reasonable care with skill
- In accordance with any information relied on
- Reasonable price (where no price has been agreed)
- Reasonable time (where no timescale was agreed)
In the SGA 1979, SGSA 1982, and CRA 2015, a buyer is required to pay what if no price is agreed and none can be determined from the dealings between the parties?
Reasonable price
What is the business efficacy test?
Where a court will imply a term into the contract if the contract requires the term to make commercial sense, and a term should not be implied if a contract is effective without it
If there is an _______ or market standard for the field of business covered by the contract, terms may be implied based on _______ and _______ in that field
industry, custom, usage
