Notes Term Or Representation

Question 1

Why is parole evidence considered?

Answer 1

Where a written contract is entered into and the statement is not included in the contract it is unlikely to be a contractual term.

Question 2

Why are expertise important when determining if it is a term or representation?

Answer 2

If the representor has the greater knowledge it is likely to be a term (Dick Bentley) and if the representee has the greater knowledge it is likely to be a representation (Oscar Chess).

Question 3

Why is the importance of the statement important?

Answer 3

Where they’re informed of the importance of the statement it is likely to be a term (Bannerman v White - hops; Schawel v Reade - horse).

Question 4

Why is timing important for a term or representation?

Answer 4

The longer the lapse of time between making the statement and the contract being formed the more likely it is to be a representation (Routledge v McKay).

Question 5

What must you consider when determining whether a statement is a term or a representation?

Answer 5

• the parole evidence rule
• relative expertise of the parties
• importance of the statement
• time