terms

• What are express terms contrasted with in contract law?

  Representations
• What is the challenge regarding express terms in contracts?

  Identifying which statements are binding terms
• What are the three groups of statements made during negotiations?

  1. Mere puffs – no legal significance
  2. Representations – not intended to be binding
  3. Terms – intended to be binding
• Why does the distinction between representations and terms matter?

  It affects remedies for untrue statements
• What happens if a term of the contract is not fulfilled?

  It results in a breach of contract
• What is the remedy for a breach of contract?

  Damages
• What is a misrepresentation?

  An untrue statement not part of the contract
• Can a statement be both a term and a representation?

  Yes, it can lead to both claims
• What objective test does the court apply to determine intent?

  What a reasonable person would understand
• What can infer that a statement was intended to be binding?

  It was made to induce the contract
• What factors do courts consider to determine if a statement is a term?

  • Importance of the statement
  • Timing of the statement
  • Reduction of the contract into writing
  • Special knowledge of the person making the statement
  • Assumption of responsibility
• How does the importance of a statement affect its classification?

  If crucial, it may be a term
• What case illustrates the importance of a statement in a contract?

  Bannerman v White
• What was the outcome in Bannerman v White regarding the hops?

  The statement was a term of the contract
• How does timing affect the classification of a statement?

  Statements made at contracting are more binding
• What case illustrates the effect of timing on statements?

  Routledge v McKay
• What did the court conclude in Routledge v McKay?

  The statement was a representation, not a term
• How does reducing a contract into writing affect statements?

  It may indicate statements are not terms
• What is considered when a party has special knowledge?

  It favors the other party's interpretation
• What do the cases Oscar Chess Ltd v Williams and Dick Bentley v Harold Smith illustrate?

  • Oscar Chess Ltd v Williams: Statement was a representation
  • Dick Bentley v Harold Smith: Statement was a term of the contract
• What can lead to a statement being a term regarding responsibility?

  Express acceptance of responsibility by the vendor
• What case involved a horse being sold as sound?

  Schawel v Reade
• What was the outcome in Schawel v Reade?

  The statement was deemed a term of the contract
• How did Ecay v Godfrey differ from Schawel v Reade?

  Seller advised buyer to have it surveyed
• What is the summary of express terms contrasted with representations?

  • Statements can be mere puffs, representations, or terms.
  • Untrue terms lead to breach of contract claims.
  • Representations may lead to misrepresentation claims.
  • Courts consider various factors to classify statements.
• What does the element express terms explain?

  How express terms of a contract are arrived at
• What is the essence of a contract?

  Agreement between the parties
• How is the intention to be bound demonstrated in contracts?

  It varies in different circumstances
• What are the ways express terms can be incorporated into a contract?

  • A signed written contract
  • Incorporation by notice
  • Incorporation by course of dealing
  • Other ways of agreeing express terms
• What does a signed written contract indicate?

  Parties intended to be bound by it
• Can a party be bound by terms they haven't read?

  Yes, if they signed the contract
• What is an exception to being bound by a signed document?

  If the document was not intended to be contractual
• What case illustrates that signing a non-contractual document does not bind parties?

  Grogan v Robin Meredith Plant Hire
• Why is timing important in contract signing?

  It affects the contractual effect of the document
• What must be shown for a clause to be incorporated by a course of dealing?

  The course of dealing must be consistent
• What is required for reasonable notice to be effective?

  It must be given before or at the time of contracting
• What did Lord Denning state about ticket cases?

  Customers cannot refuse tickets from machines
• What happens if terms differ from the notice given before the contract?

  The customer is not bound by those terms
• What is the significance of an 'entire agreement' clause?

  It clarifies the scope of the parties' agreement
• Can an 'entire agreement' clause exclude liability for misrepresentation?

  No, it is unlikely to do so