Statements

Question 1

Introduction?

Answer 1

The Courts must work to identify whether the statement in the contract is a representation or an express term. Is a statement in a contract made by either party a representation or an express term.

Question 2

1) The Importance attached to the statement and did the person rely on the statement?

Answer 2

Couchman v Hill - Where the statement is important to a contract it will be seen as a term.

Question 3

2) Special Knowledge of the person making the statement?

Answer 3

Where a person has special knowledge contributing towards the contract the statement will be a term. Bentley v Harold Smith Motors - One Party relied on the knowledge of another.

Oscar Chess v Williams - Where there is no specialist knowledge it will be a representation.

Question 4

3) Any lag in time between the statement and the contract?

Answer 4

Routeledge v MacKay - Where the contract is made later and doesn’t refer to the statement, it is likely that the statement will not become a term.

The Courts presume that everything wanted will be written down.

Question 5

4th part of the test?

Answer 5

Whether there is a written contract.