part 1

• What is a mere representation in the context of a contract?

  A statement of fact that encourages the other party to enter into the contract.
• Why is it important to distinguish between terms and mere representations?

  Terms are part of the contract, while representations are not, affecting rights to claim damages.
• What happens if a term of a contract is breached?

  The aggrieved party has an automatic right to claim damages.
• What is the difference between breach of contract and misrepresentation?

  Misrepresentation is a separate cause of action from breach of contract.
• What tests are applied to determine the significance of a statement in a contract?

  1. Importance of the statement
  2. Timing of the statement
  3. Knowledge or expertise of the parties
  4. Inclusion in a written contract
  5. Existence of collateral contracts
• In the case of Bannerman v White, what was the significance of the statement about sulphur?


  The statement was deemed a term of the contract, allowing D to refuse payment.
• What was the outcome of Routledge v McKay regarding the age of the motorbike?


  The claim failed because the timing suggested the statement was not a term.
• In Dick Bentley Productions v Harold Smith Motors, why was the dealer's statement considered a term?

  Because the dealer was an expert and the statement was significant to the buyer's decision.
• Why was the statement in Oscar Chess v Williams not considered a term of the contract?

  The seller was a private individual and the buyers were experienced dealers.
• What does the parol evidence rule state regarding written contracts?

  Extrinsic evidence cannot change the express terms of a written contract.
• In Couchman v Hill, what was the significance of the oral statements made about the heifer?

  The oral statements were admissible and formed part of the binding transaction.
• What is a collateral contract?


  A promise that may be enforced if it induces a party to enter the main contract.
• In City and Westminster Properties v Mudd, what was the outcome regarding the oral assurance about living on the premises?


  The oral assurance was admissible as evidence of a collateral contract.
• What are express and implied terms in a contract?

  • Express Terms: Stated by the parties, in writing or orally.
  • Implied Terms: Not stated but implied by courts or statute.
• What are the two types of terms in a contract?

  Express terms and implied terms.