Contract - Terms Flashcards
(9 cards)
Three types of statements in a contract
a) mere puffs - no legal effect
b) representation - possible action in misrepresentation
c) express term - assess whether term breached
How can parties to a written contract reduce the possibility of a claim that there are binding oral terms alongside the written terms?
The parties can include an ‘entire agreement’ clause in their written contract
How long is the short-term right to reject?
30 days from time that ownership has passed and goods have been delivered
In cases where trader must install goods or take action enable consumer to use the goods - from the time they have notified the consumer that they have done that
Three remedial options available to the consumer - contracts for goods
a) short-term right to reject
b) right to repair or replacement
c) right to a price reduction or the final right to reject
Two remedial options available to the consumer - contracts for services
a) right to require repeat performance
b) right to a price reduction
Under the Sale of Goods Act 1979, what is the classification of the implied term that goods will correspond with their description?
The term is classified as a condition, but it may be treated as a warranty if the breach is so slight that it would be unreasonable for the buyer to reject the goods
What is the remedy for breach of an innominate term?
The innocent party is limited to suing for damages where the consequence of the breach is minor
Test for innominate term?
The test focuses on the consequences of the breach and asks the question whether the breach has deprived the innocent party of substantially the whole benefit of the contract. Where the question is answered in the affirmative, ie the consequences of the breach are serious, the term will be treated as a condition. Where the question is answered in the negative, ie the consequences of the breach are minor, the term will be treated as a warranty.
