Podcast
Questions and Answers
What distinguishes terms from representations in a contract?
What distinguishes terms from representations in a contract?
- Terms are always written, while representations are only spoken.
- Terms are only conditions, while representations can be warranties.
- Terms are binding provisions of a contract, while representations are not. (correct)
- Terms cannot be implied, while representations can.
What is a collateral contract?
What is a collateral contract?
- A separate contract that is written and includes all terms.
- A contract that supersedes the main contract.
- An oral statement made before a written contract that is binding. (correct)
- A contract that includes implied terms only.
Which of the following describes an implied term in a contract?
Which of the following describes an implied term in a contract?
- A term explicitly stated by the parties.
- A condition that must be met for the contract to be enforceable.
- A term that is only valid if it is included in writing.
- A term inferred by law or custom rather than explicitly stated. (correct)
Which of the following is NOT a classification of terms in a contract?
Which of the following is NOT a classification of terms in a contract?
When determining whether a statement is a term or representation, which factor is considered?
When determining whether a statement is a term or representation, which factor is considered?
What type of terms can be included in a contract according to the classifications provided?
What type of terms can be included in a contract according to the classifications provided?
Which statement best describes the parol evidence rule?
Which statement best describes the parol evidence rule?
Which of the following statements is true regarding terms of a contract?
Which of the following statements is true regarding terms of a contract?
What does a longer time between a statement and the conclusion of a contract indicate?
What does a longer time between a statement and the conclusion of a contract indicate?
In the case of Bannerman v White, why was the statement regarding sulphur usage considered important?
In the case of Bannerman v White, why was the statement regarding sulphur usage considered important?
What does the exclusion of a statement from a written contract usually suggest?
What does the exclusion of a statement from a written contract usually suggest?
What factor is crucial when evaluating the nature of a statement made in a contract?
What factor is crucial when evaluating the nature of a statement made in a contract?
In Dick Bentley Productions Ltd v Harold Smith Motors Ltd, what was the issue with the mileage statement?
In Dick Bentley Productions Ltd v Harold Smith Motors Ltd, what was the issue with the mileage statement?
What does it indicate when the maker of a statement has greater expertise than the receiver?
What does it indicate when the maker of a statement has greater expertise than the receiver?
Which of the following statements is true regarding the relationship between the time a statement is made and legal enforceability?
Which of the following statements is true regarding the relationship between the time a statement is made and legal enforceability?
What would a buyer likely do if they were informed that sulphur had been used in the hop treatment after having already agreed on the price?
What would a buyer likely do if they were informed that sulphur had been used in the hop treatment after having already agreed on the price?
Flashcards
Terms vs. Representations
Terms vs. Representations
Statements made during contract negotiations can be either terms (binding) or representations (not binding).
Collateral Contract
Collateral Contract
A separate contract related to the main contract, often an oral promise made before a written agreement, and is binding.
Pre-contractual Statements
Pre-contractual Statements
Statements made during contract negotiations. They can be either terms (binding) or representations (non-binding).
Express Terms
Express Terms
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Implied Terms
Implied Terms
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Representation
Representation
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Contracting Terms
Contracting Terms
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Distinguishing Terms
Distinguishing Terms
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Representations vs. Terms
Representations vs. Terms
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Time Gap (Statement to Contract)
Time Gap (Statement to Contract)
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Importance of Statement
Importance of Statement
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Written Contract Exclusion
Written Contract Exclusion
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Maker's Knowledge/Expertise
Maker's Knowledge/Expertise
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Routledge v McKay (Example)
Routledge v McKay (Example)
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Bannerman v White (Example)
Bannerman v White (Example)
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Dick Bentley case (Example)
Dick Bentley case (Example)
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Study Notes
Contents of Contract - Introduction
- Contract negotiations are common
- Are statements made during negotiations part of the contract?
- Yes, if it is a term
- No, if it is a representation
- Collateral contracts: specific statements that become a separate contract
- Oral statements binding before written contracts
- Terms vs. Collateral contracts -- key differences
- Method for distinguishing terms and representations
Pre-Contractual Statements
- Statements before a finalized contract
- Representational vs. terms
- Key differences for determining if a statement is a term or representation
- When the statement was made
- Its importance
- Inclusion into the final written contract
- Knowledge and expertise of the maker
Terms vs. Representations
-
When the statement was made:
- Statements made closer to the contract are more likely to be terms
- Statements further away are more likely representations
-
Importance of the statement:
- More significant statements likely terms
- Less significant statements likely representations
- Example: Bannerman v White - statement about sulphur use crucial for the deal
-
Inclusion in written contract:
- Omitted statements likely representations
- Included statements are more likely terms
- Example: Routledge v McKay - model year omission was not a contract term
-
Knowledge and expertise of maker:
- Makers with greater knowledge/expertise likely to give binding terms, lack of knowledge/expertise leans towards representations
-
Examples:
- Dick Bentley Productions Ltd v. Harold Smith Motors Ltd - statement about car mileage was crucial to the contract, implying a term.
- Oscar Chess Ltd v. Williams - information in the logbook (seller lack of expertise) was not a significant contract term.
Parol Evidence Rule (Exceptions)
- Rule generally prevents evidence that contradicts a written contract
- Exceptions when the rule does not apply.
Terms of the Contract
- Classifications of terms (conditions, warranties, innominate)
- Implied terms (inferred by law or custom)
- Exemption clauses (limiting liability)
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Description
This quiz explores the nuances of contract law, specifically focusing on the differences between terms and representations in contract negotiations. Participants will learn how pre-contractual statements can impact the final agreement and the criteria for distinguishing between terms and collateral contracts. Test your understanding of these legal principles!
