Contract Law: Express Terms and Promissory Statements

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Questions and Answers

What was the key issue in the case of Handbury v Nolan?

Was the auctioneer's statement a promise? (correct)

Was the cow sold legally without a warranty?

Was the auctioneer's statement a representation of fact?

Did the buyer have legal standing to sue?

What did the court imply from the auctioneer's statement?

The statement did not have any legal implications.

The statement was a casual remark.

The statement constituted an express term of the contract. (correct)

The statement was purely an opinion.

What factor contributed to the court's decision in Handbury v Nolan?

The auctioneer's lack of knowledge regarding the cow

The language of the statement expressed as a representation (correct)

The auctioneer's absence during the sale

The buyer's prior experience with cows

What was a significant circumstance considered by the court in Handbury v Nolan?

The statement was made immediately before the sale. Signup and view all the answers

Which aspect of the auctioneer's statement was crucial in determining its nature as promissory?

It was made by someone knowledgeable about the cow. Signup and view all the answers

What characterizes a puff statement?

It is a personal opinion without any legal consequences. Signup and view all the answers

What is a representation in the context of contract negotiations?

A factual statement made with intent to form a contract. Signup and view all the answers

Which of the following scenarios would likely be considered a misrepresentation?

A seller states that a car has a clean title without checking. Signup and view all the answers

In the case of Oscar Chess Ltd v Williams, what was determined about W’s statement regarding the car's age?

It constituted a representation that was actually a misrepresentation. Signup and view all the answers

What factors determine whether a statement is considered promissory?

The language used and surrounding circumstances. Signup and view all the answers

What happens if a representation is proven to be false?

The affected party may have grounds for rescinding the contract. Signup and view all the answers

Which statement is true about opinions in the context of contract negotiations?

Opinions are regarded as statements of personal beliefs. Signup and view all the answers

What is the consequence of a misrepresentation in a contract negotiation?

It can entitle the misled party to seek damages. Signup and view all the answers

What must parties intend for a statement made during negotiations to be enforceable as a contractual promise?

To enter into a partly-written, partly-oral or wholly oral contract Signup and view all the answers

In which type of contract are promises made during negotiations not enforceable?

Wholly written contracts Signup and view all the answers

What is a required characteristic of a statement made during negotiations for it to be enforceable?

It must be sufficiently promissory in nature Signup and view all the answers

In the case of Van den Esschert v Chappell, what was the outcome regarding the oral promise?

The oral promise was included as part of the contract Signup and view all the answers

Which of the following statements best describes 'puffery' in the context of negotiations?

An exaggerated claim not meant to be taken literally Signup and view all the answers

What results from a contract being classified as wholly-written?

All terms must be documented to be enforceable Signup and view all the answers

What distinguishes a partly-written, partly-oral contract from a wholly-written contract?

It can include verbal representations that are enforceable Signup and view all the answers

Which type of statement cannot become a contractual term during negotiations?

Puffery Signup and view all the answers

Study Notes

Terms of a Contract

Express Terms: Statements made during negotiations that can be enforced as contractual promises if parties intended to enter into a partly-written, partly-oral, or wholly oral contract.
Types of Contracts:
- Wholly-written contracts: Involve signed documents intended as the only source of obligations.
- Partly-written, partly-oral contracts: Include signed documents along with additional orally agreed terms.
- Oral contracts: Contain terms solely agreed upon verbally with no written documentation.

Promissory Statements

For promises made during negotiations to be enforceable, they must be sufficiently promissory and related to the intended contract type.
Puffery: Exaggerated claims meant to engage interest; recognized as non-promissory and not part of the contract.
Opinions: Personal views or beliefs that do not create legal liability; also not included in the contractual terms.
Representations: Statements of fact made during negotiations that do not equate to contract terms and can lead to misrepresentation if proved untrue.

Legal Cases

Van den Esschert v Chappell:
- Oral promise regarding house infestation led to a finding that it was a partly-written, partly-oral contract obligation.
Oscar Chess Ltd v Williams:
- Misrepresentation case involving incorrect identification of a car's model; seller lacked expertise, hence no promise was inferred.
Handbury v Nolan:
- An auctioneer's statement about a cow's pregnancy was deemed promissory as it was made confidently and in a knowledgeable context, thus forming contractual obligation.

Key Determinants of Promissory Nature

The determination of whether a statement is promissory depends on the language used and the context in which it was made.
Promissory statements must be clearly distinguishable from opinions, puffery, or mere representations to establish contractual liability.

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Description

This quiz covers the fundamental concepts of contract law, focusing on express terms and the various types of contracts. It explores the enforcement of promises made during negotiations and clarifies the difference between puffery, opinions, and representations. Test your understanding of these vital legal principles.