contact terms

Question 1

What are contract terms?

Answer 1

• the things that you have agreed to
• terms of the agreement: the essence of the agreement if any of them are breached then that can amount to a breach of contract

Question 2

What is a term and what is a representation?

Answer 2

• if a representation turns out to be false it is a misrepresentation
• A representation is a statement
• Sometimes a statement will amount to a term of a contract

Question 3

Couchman v Hill

Answer 3

the importance attached to a statement.
- if it is very important it will be a term, if not it will be a representation

Question 4

Oscar Chess v Williams

Answer 4

when a lash tech cleans out your pipes and you don’t check after

Question 5

Dick Bentley v Harold Smith Motors

Answer 5

they have special knowledge so the misinformation was a term because they should have known

Question 6

Routledge v McKay

Answer 6

• time lag between making the contract and making the statement, just a representation (time lag was 7 days)

Question 7

Define condition

Answer 7

the most important term, it is a heart of the contract

Question 8

Define warranty

Answer 8

less important and doesn’t take away the purpose of the contract

Question 9

Poussard v Spiers and Pond

Answer 9

if a person is to breach a condition of the contract it will end the contract completely.
This is called repudiation

Question 10

Bettini v Gye

Answer 10

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

Question 11

What is an innominate term?

Answer 11

• neither a condition or a warranty, it is something in between
  -depends on the consequence
• Hong Kong Shipping Co - outcome of the breach of term did not take away the entire purpose

Question 12

Define express terms

Answer 12

written documents or they’ve spoken about it

Question 13

define implied terms

Answer 13

they are implied to the contract even if they haven’t been spoken about

Question 14

What are terms implied by common law

Answer 14

previous cases have shown that judges have implied a term to a contract

Question 15

What is the business efficacy test?

Answer 15

• is the term necessary?
  The Moorcock: if the parties had thought about it (but never spoke or wrote about it) would they have agreed to it

Question 16

What is the officious bystander test?

Answer 16

Marks and Spencer PLC v BNP - something so obvious that it goes without saying
Shirlaw - its so obvious it goes without saying

Question 17

Hillas v Acros

Answer 17

they have been terms of the contract before so they will be in the new one