Terms- contrasting a term and a representation

Question 1

What is a term

Answer 1

A statement made that forms part of contractural obligations, is legally binding

Question 2

What is a representation

Answer 2

A statement made that doesnt form part of contractural obligations

Question 3

What are the 4 factors to determine is a statement is a term or a representation

Answer 3

• importance of statement
• knowledge of person making statement
• time lag between statement + contract
• whether there’s a written agreement

Question 4

Explain importance of statement

Answer 4

If importance attached to statement and clearly induced party to enter contract- likely to be a term

Question 5

Explain special knowledge/skill of person making statement

Answer 5

If skilled in area of contract, statement likely to be relied upon- more likely to be a term

Question 6

Explain time lag between statement and contract

Answer 6

The longer the time between the 2, the less likely its been influential- less likely to be a term

Question 7

Explain written agreement

Answer 7

If contract written, assumed that parties included all terms or that its possible for terms to be implied- more likely to be a term

Question 8

What case is used for written agreement

Answer 8

Bannerman v white