Topic 6: Contract Law: Terms of a contract & regulations Flashcards
What does express and implied terms mean?
Express terms - terms within offer that become part of contract once accepted
Implied - a term implied by either courts, custom or statute.
What protection do buyers get through statutory intervention? and give some examples.
Consumer rights act 2015 (Business to consumer) & Sale of Goods Act 1979 (Private sales, Business to business etc/other contracts).
General:
- Goods supplied are fit for purpose
- Goods supplied by sample match the sample
- Quality of goods are satisfactory.
How does statute restrict the use of exclusion clauses?
Applies a three-stage test:
1) Is the clause incorporated into the contract
2) is the clause clear and unambiguous?
3) Is it valid under CRA 2015 and Unfair Contract Terms Act 1977? (Mainly B2B Exclusion for UFTA)
Whats the effect of exclusion clauses?
Seeks to exclude one party’s liability in the event of a breach.
How do we distinguish terms from mere representations?
A term forms part of the contract, a representation only induces party into entering a contract. However, if person indcuing has either of these factors it can be seen that it will form a term.
- Reliance placed on statement that they would not have entered without
- Person saying statement have specialist skill/knowledge
- Strength of statement (in writing?)
What are the 3 different types of contractual terms?
Conditions - Of fundamental importance of the contract. If breached they can repudiate the contract and claim for damanges.
Warranties - less importance to the contract but wont be able to bring contract to an end but can bring damages for the part where it has been breached.
Innominate term - unfair to classify as either a condition or warranty until there has been a breach and courts can see the seriousness of breaking that term. THEY use “will the breach deprive the innocent party of a substantial part of their bargain”? if yes then its a condition if not then its a warranty.
