Contract Glossary

Question 1

Executory consideration

Answer 1

consideration that has been promised but not yet provided

Question 2

A contractual term

Answer 2

Statements of fact made by the parties which they intend to be binding

Question 3

In what circumstances may the contra proferentum rule and the Canada Steamship test be less relevant?

Answer 3

When an exemption clause occurs in a commercial contract between parties of equal bargaining power

Question 4

A representation

Answer 4

A statement asserting the truth of a given state of facts

Question 5

Fraudulent misrepresentation

Answer 5

A false representation that was made knowingly or without belief in its truth or recklessly

Question 6

Why is negligent misrepresentation under the Misrepresentation Act 1967 an easier claim for a claimant to establish than a fraudulent misrepresentation claim?

Answer 6

The normal burden of proof is reversed and the defendant bears the burden of proving that they had reasonable grounds for believing their statement and that they did believe it

Question 7

the entire obligations rule

Answer 7

An obligation is discharged by complete performance of the obligation. Until the obligation is completely performed, the performing party is not entitled to payment

Question 8

repudiatory breach

Answer 8

one party breaches a term of the contract which is either a condition or an innominate term which is to be treated as a condition