Terms Of A Contract Flashcards
What is the difference between terms of a contract and mere representations
Term of the Contract
A provision forming part of the contractual obligations of the parties. If it turns out to be untrue or is broken, the innocent party can sue for breach of contract and claim damages.
Mere Representation
A statement of fact or opinion made to induce the other party to enter into the contract, but which is not incorporated into its terms. If it is untrue, the remedy lies in the law of misrepresentation
Explain the main classification of terms
What happened in the case of routledge v mckay and how is it related to terms
Oscar Chess Ltd v Williams. What is the significance of this case to terms of a contract
Bannerman v White
What does section 11 of act 25(Contract Act) say?
Sec 11 of Contracts Act- A contract may be wholly written, wholly oral or partly written and partly oral. It cannot be invalidated because it is not in writing
How are thecrerma of an oral contract ascertained?
The test is one of contractual intention and therefore is an objective one.
●The courts look to see whether, considering all the circumstances a reasonable third party would assume that the party making the statement intended it to a term of the contract or not.
Can the importance of a statement be used to ascertain the terms of a contract? (Bannerman v White)
White was interested in purchasing hops from Bannerman.
* During the negotiations, White specifically asked Bannerman if any of the hops had been treated with sulphur, stating that if they had, he would not even bother to ask the price as he would not buy them for his business.
* Bannerman assured White that no sulphur had been used in the treatment of the hops.
* Based on this assurance, White purchased the hops.
* It later turned out that a small portion (about 5 acres out of 300) of the hops had indeed been treated with sulphur.
* White repudiated (rejected) the contract, arguing that Bannerman’s statement was a condition of the contract and that its falsity entitled him to do so.the court rule that Bannerman’s statement was a condition of contract and thus White was entitled to repudiation .
Relative Means of Knowledge of Parties. Is this relevant in ascertaining the terms of a contract
