What is a contract made up of

Question 1

Term or representation

Answer 1

A representation is a statement. If the statement is untrue, it will be a misrepresentation

Sometimes a statement will amount to a term of the contract especially if there is no written agreement

Question 2

what is considered to be a statement - coachman v hill

Answer 2

the importance attached to the statement

Question 3

what is considered to be a statement - oscar chess v williams

Answer 3

the knowledge or skill of the person making the statement
statement was not a term in this case, just a representation as did not have special knowledge

Question 4

what is considered to be a statement - dick bentley v harold smith motors

Answer 4

the knowledge or skill of the person making the statement
the statement was a term as he had special knowledge

Question 5

what is considered to be a statement - routledge v mckay

Answer 5

time lag between making the contract and making the statement

Question 6

what is considered to be a statement

Answer 6

whether there is a written contract

Question 7

types of terms - conditions

Answer 7

Conditions – at the heart of a contract, if a person is to breach a condition of the contract it will end the contract completely. This is called repudiation.

Question 8

poussard v spiers and pond

Answer 8

conditions terms

Question 9

types of terms - warranties

Answer 9

if a person is to breach a warranty it will not terminate the contract, but the party can claim damages

Question 10

bettini v gye

Answer 10

warranties terms

Question 11

types of terms - innominate terms

Answer 11

a term that is not clearly a condition or warranty, depends on the consequences

Question 12

hong kong shipping co

Answer 12

innominate terms
we cannot classify as either kind of term until they have actually been breached

Question 13

express terms

Answer 13

specifically agreed

Question 14

implied terms

Answer 14

implied in the contract

Question 15

terms implied by common law

Answer 15

• Previous cases have shown that judges have made the decision to imply a term into a contract
• Business efficacy test
• The official bystander test
• terms implied by prior dealings

Question 16

Business efficiency test

Answer 16

Is the term necessary for the contract to work? If the parties had thought about it, would they have agreed for that to be a term of the contract?

Question 17

The Moorcock

Answer 17

Business efficiency test example

Question 18

The official bystander test

Answer 18

something so obvious that it goes without saying

Question 19

terms implied by prior dealings

Answer 19

parties have entered into a contract with each other before and previously it had been a term of the contract so moving forward it still would be

Question 20

Hillas v Arcos

Answer 20

Terms implied by prior dealings example