Terms Flashcards
(47 cards)
What is a pre-contractual statement?
A statement made during negotiations before a contract is formed
What is a term in a contract?
A legally binding part of the contract
What is a representation?
A statement made to persuade but not legally binding.
What is a mere puff?
A promotional statement not meant to be taken seriously.
What case involved a mere puff?
Dimmock v Hallett (land described as “fertile and improvable”).
What case showed that a serious statement could be a term?
Carlill v Carbolic Smoke Ball (money deposit made promise enforceable).
How does importance affect whether a statement is a term?
.
If a statement is crucial to the contract, it is more likely to be a term.
What case showed importance of a statement making it a term?
Couchman v Hill (buyer relied on assurance that a heifer was unserved).
How does special knowledge affect whether a statement is a term?
If made by an expert, it is more likely to be a term
What case showed that specialist knowledge made a statement a term?
Dick Bentley v Harold Smith (car dealer’s mileage statement was binding)
How does timing affect whether a statement is a term?
The longer the gap between statement and contract, the less likely it is a term.
What case showed a delay meant a statement was not a term?
Routledge v McKay (statement about motorbike’s age made a week before sale).
How does verification affect whether a statement is a term?
If the seller suggests checking, it is less likely to be a term
. What case showed that suggesting verification made a statement a representation?
Ecay v Godfrey (seller advised buyer to survey a boat).
How does written inclusion affect whether a statement is a term?
If not included in writing, courts assume it was not intended as a term.
What case showed that omission from a written contract meant a statement was not a term?
Routledge v McKay (contract made no mention of motorcycle’s age).
How does notice to the other party affect whether a statement is a term?
A term must be properly communicated before the contract is formed
What case showed a term must be communicated at the right time?
Olley v Marlborough Court Hotel (hotel notice after check-in was ineffective).
. What is an express term?
A term clearly stated in the contract, either written or verbal.
What is an implied term?
A term not stated but included by law, courts, or custom.
How can a term be implied by law?
If required for policy reasons in specific contract types.
. What case showed a term implied by law?
Liverpool CC v Irwin (implied landlord obligations in a tenancy).
How can a term be implied for business efficacy?
If necessary for the contract to function properly.
What case established the business efficacy test?
he Moorcock (mooring contract implied safe docking conditions
