Interpreting terms II Flashcards
What legal outcomes can a breach of a term or warranty lead to in contract law?
Breach may lead to expectation damages, termination (if a condition or innominate term is seriously breached), or specific performance.
How does the Misrepresentation Act 1967 relate to representations in contract law?
It provides measures for rescission and damages in cases of fraudulent misrepresentations.
What distinguishes express terms from implied terms in a contract?
Express terms are explicitly stated and can be written or oral, while implied terms are not stated but are inferred to fulfill the contract’s purpose or by law.
Under what conditions can collateral contracts or terms be established?
Subject to tests of intention and causation, where oral promises inducing contract formation cannot be negated by written conditions.
What does the Business Efficacy test entail for implying terms in a contract?
It implies terms essential for the contract’s viability, as demonstrated in The Moorcock (1889).
How does the Officious Bystander test determine implied terms?
It involves terms so obvious that they go without saying, refined by Lord Hoffmann to include an objective test against the contract’s background.
What example demonstrates common law’s role in implying terms by law?
Lord Denning’s ruling in Shell (UK) Ltd v Lostock Garage Ltd (1976) about obligations based on reasonableness, not parties’ intentions.
How does statute imply terms in contracts according to the Sale of Goods Act 1979?
It implies terms regarding title (s 12(1)) = ‘Sellers must have the right to sell the goods, and they impliedly warranty that the buyer will enjoy quiet possession.’
and correspondence with description (s 13(1)). =’Where there is a contract for the sale of goods by description, there is an implied [F1term] that the goods will correspond with the description.’
