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Terms Flashcards

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1
Q

What are the contents of a contract referred to as?

A

The terms of a contract

They define the rights and obligations arising from the contract.

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2
Q

What are the two types of contractual terms?

A

Express and implied terms

Express terms are stated by the parties, while implied terms are deemed to exist by law.

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3
Q

What distinguishes express terms from representations?

A

Express terms are intended to be binding, whereas representations are not

The distinction is significant when statements are untrue.

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4
Q

What are mere puffs in the context of contractual statements?

A

Statements of no legal significance

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5
Q

What can an untrue statement classified as a term of the contract lead to?

A

A breach of contract claim

The innocent party may claim damages.

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6
Q

What is the court’s approach to determine if a statement is a term or a representation?

A

An objective test based on the intention of the parties

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7
Q

What factors do courts consider when determining the binding nature of a statement?

A
  • The importance of the statement
  • The timing of the statement
  • The reduction of the contract into writing
  • Special knowledge of the person making the statement
  • Assumption of responsibility
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8
Q

What case illustrates that a statement can be regarded as a term if it was crucial to the injured party?

A

Bannerman v White (1861)

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9
Q

How does the timing of a statement affect its classification as a term?

A

Statements made at the time of contracting are more likely to be terms than those made earlier

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10
Q

What was the outcome of Routledge v McKay regarding the year of a motorcycle model?

A

The statement was deemed a representation due to the timing of its making

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11
Q

How can express terms be incorporated into a contract?

A
  • A signed written contract
  • Incorporation by notice
  • Incorporation by course of dealing
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12
Q

What case established that signing a contract shows an intention to be bound by its terms?

A

L’Estrange v Graucob Ltd (1934)

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13
Q

What is a key exception to the rule that a signed contract is binding?

A

If the document was not intended to have contractual effect

Example: Grogan v Robin Meredith Plant Hire (1996)

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14
Q

What does incorporation by notice entail?

A

One party notifying the other of the terms

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15
Q

What case established the principle of reasonable steps for incorporating terms by notice?

A

Parker v South Eastern Railway Co (1876-77)

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16
Q

What can happen if reasonable notice of terms is not given?

A

The terms may not be incorporated into the contract

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17
Q

What is the significance of the case Thompson v London, Midland & Scottish Railway regarding incorporation of terms?

A

Terms may be incorporated by reference to a different document

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18
Q

What does the term ‘assumption of responsibility’ imply in contract law?

A

A statement may become a term if the vendor accepts responsibility for the item’s soundness

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19
Q

Which case exemplifies the assumption of responsibility in contractual terms?

A

Schawel v Reade (1913)

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20
Q

What is the effect of special knowledge or skill in determining whether a statement is a term?

A

It may favor the party with less knowledge in classifying the statement as a term

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21
Q

What were the contrasting outcomes of Oscar Chess Ltd v Williams and Dick Bentley Productions v Harold Smith regarding statements about a car’s age and mileage?

A
  • Oscar Chess Ltd v Williams: statement was a representation
  • Dick Bentley Productions v Harold Smith: statement was a term
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22
Q

What case established that terms may be incorporated by reference to a different document?

A

Thompson v London, Midland & Scottish Railway [1930] 1 KB 41

This case involved a ticket that referred to terms within a railway timetable.

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23
Q

What must a party do to incorporate particularly adverse terms into a contract?

A

Clearly bring these to the other party’s attention

This principle was established in Thornton v Shoe Lane Parking [1971] 2 QB 163.

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24
Q

In which case was it stated that onerous clauses need to be highlighted dramatically?

A

Thornton v Shoe Lane Parking [1971] 2 QB 163

Lord Denning MR suggested they should be ‘printed in red ink’.

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25
What happens when a document containing contractual terms is signed?
The signing party is bound by those terms ## Footnote This was established in L'Estrange v Graucob Ltd [1934] 2 KB 394.
26
What case presented the first opportunity for the Court of Appeal to consider online contracts?
Parker-Grennan v Camelot UK Lotteries Ltd [2024] EWCA Civ 185
27
When must reasonable notice of a clause be given for it to be incorporated into a contract?
Before or at the time of contracting
28
In Thornton v Shoe Lane Parking, what indicated that a contract was formed?
The customer putting money into the ticket machine
29
What was held in Chapleton v Barry UDC regarding a ticket given after payment?
The ticket was not intended to have contractual effect ## Footnote It was perceived as merely a receipt.
30
What is necessary for a course of dealing to imply terms into a contract?
The course of dealing must be consistent and regular
31
What was deemed insufficient to establish a course of dealing in Hollier v Rambler Motors?
Three or four transactions over five years
32
What can terms of a contract be agreed upon besides written contracts?
Verbal exchanges or conversations
33
What are exclusion clauses often considered to be?
Onerous
34
What does an entire agreement clause do?
It clarifies that a document constitutes the entire agreement between the parties
35
What is the presumption regarding material terms in a contract?
The parties have expressed every material term they intend to govern the contract
36
What types of terms can be implied into contracts?
Terms implied in fact and terms implied in law
37
What is one way terms can be implied in fact?
Based on trade customs
38
What does 'business efficacy' mean in the context of implied terms?
To make the contract produce its intended objective
39
What is a common law example of implied terms?
Terms implied in landlord and tenant relationships
40
What are statutory implied terms?
Terms that will be implied into contracts regardless of the parties' intentions ## Footnote Examples include terms in the Sale of Goods Act 1979.
41
What act provides for important obligations in contracts for the sale of goods?
Sale of Goods Act 1979
42
What is a key aspect of terms implied in law?
They arise as a matter of policy in certain contractual relationships
43
What are implied terms in a contract?
Terms that can be assumed to be part of a contract, even if not expressly stated.
44
What types of relationships can imply terms at common law?
Certain types of relationships, as a matter of policy.
45
Which statutes imply terms into contracts?
* Sale of Goods Act 1979 * Supply of Goods and Services Act 1982 * Consumer Rights Act 2015
46
What is the Sale of Goods Act 1979?
A key piece of legislation governing the sale of goods, including important implied terms.
47
Do the implied terms of the Sale of Goods Act 1979 apply to consumer contracts?
No, they do not apply to consumer contracts as defined in the Consumer Rights Act 2015.
48
What does Section 12 of the Sale of Goods Act 1979 imply?
The seller has the right to sell the goods.
49
What does Section 13(1) of the Sale of Goods Act 1979 state?
Goods must correspond with the description.
50
What is satisfactory quality according to Section 14(2)?
Goods must meet the standard a reasonable person would find satisfactory.
51
List the factors considered in assessing satisfactory quality under Section 14(2B)
* Fitness for purpose * Appearance and finish * Freedom from minor defects * Safety * Durability
52
What is the implication of Section 14(3) regarding fitness for a particular purpose?
Goods must be reasonably fit for a purpose made known to the seller.
53
What does Section 15 of the Sale of Goods Act imply for sales by sample?
* Bulk corresponds with the sample in quality * Goods free from defects not apparent on reasonable examination
54
What is the significance of Section 15A?
It allows for a breach of condition to be treated as a breach of warranty if slight.
55
What does Section 55 of the Sale of Goods Act state about contracting out implied terms?
Liability can be excluded or restricted by agreement, subject to the Unfair Contract Terms Act 1977.
56
What does the Supply of Goods and Services Act 1982 regulate?
Implied terms in contracts for goods transfer, hire of goods, and supply of services.
57
What is the implied term concerning services under the Supply of Goods and Services Act 1982?
Services will be carried out with reasonable care and skill (s.13).
58
What does Part I of the Consumer Rights Act 2015 cover?
Consumer contracts for goods, digital content, and services.
59
Define 'consumer' as per the Consumer Rights Act 2015.
An individual acting for purposes that are wholly or mainly outside their trade, business, craft or profession.
60
What are the implied rights in a consumer sale of goods?
* Goods should be of satisfactory quality (s 9) * Fit for purpose made known (s 10) * Match the description (s 11) * Seller has the right to sell (s 17)
61
What does the Consumer Rights Act 2015 require for digital content?
Implied terms similar to those for consumer goods.
62
What is the requirement for goods sold to consumers regarding satisfactory quality?
Goods should be of satisfactory quality (s 9) ## Footnote This means they meet the standard a reasonable person would consider satisfactory.
63
What must goods match if they are sold by description?
Goods must match the description (s 11) ## Footnote This ensures consumers receive what they expect based on the trader's description.
64
What rights are implied for consumers contracting for digital content?
* Should be of satisfactory quality (s 34) * Should be reasonably fit for purpose (s 35) * Should match any description (s 36) ## Footnote These rights ensure that digital content meets consumer expectations.
65
How is the quality of digital content determined under the Consumer Rights Act?
Quality is satisfactory if it meets the standard a reasonable person would consider satisfactory (s 34(2)) ## Footnote This includes considerations of description, price, and other relevant circumstances.
66
What is the consumer's right regarding services performed under a contract?
* Service must be performed with reasonable care and skill (s 49) * Reasonable price must be paid if not agreed (s 51) * Service must be provided in a reasonable time if not fixed (s 52) ## Footnote These rights protect consumers when they hire services.
67
What are the consumer's options if goods fail to meet the requirements under the Consumer Rights Act?
* Short term right to reject * Right to repair or replacement * Right to a price reduction or final right to reject ## Footnote These remedies apply when goods are non-conforming.
68
What is the time frame for the short term right to reject goods?
30 days from ownership passing and delivery (s 22) ## Footnote This right allows consumers to reject goods that do not meet the required standards.
69
Under what conditions can a consumer require repair or replacement of goods?
Repair or replacement is available unless it is impossible or disproportionate (s 23) ## Footnote This means the cost must not be unreasonable relative to the consumer's interests.
70
What happens if a consumer exercises the final right to reject within 6 months?
They are entitled to a full refund with no deduction for use (s 24(10)) ## Footnote This rule does not apply to motor vehicles or other specified goods.
71
What are the remedies available for non-conforming digital content?
* Right to repair or replacement * Right to price reduction ## Footnote These remedies are specified in s 42 of the Consumer Rights Act.
72
What must a trader do if digital content is non-conforming?
Repair or replace within a reasonable time and without significant inconvenience (s 43(2)(a)) ## Footnote This ensures that the consumer's experience is minimally disrupted.
73
What is the consumer's right if non-compliant digital content causes damage?
Right to repair or compensatory payment (s 46) ## Footnote This applies if the damage would not have occurred with reasonable care.
74
What are the consumer's options if services are non-conforming?
* Right to require repeat performance * Right to price reduction ## Footnote These options are outlined in section 54 of the Consumer Rights Act.
75
What is the traditional distinction between conditions and warranties?
A condition is a term going to the root of the contract, while a warranty is a less important term ## Footnote This distinction affects the remedies available upon breach.
76
What happens if a party breaches a condition?
The innocent party can treat the contract as repudiated and sue for damages ## Footnote This allows them to terminate the contract and seek compensation.
77
What is an innominate term?
A term that is neither a condition nor a warranty but depends on the consequences of its breach ## Footnote This classification allows for flexibility in legal outcomes.
78
What should be considered when classifying terms of a contract?
* Statute * Parties' intention * Previous judicial decisions ## Footnote This approach ensures clarity in legal interpretations.
79
What does section 15A of the SGA 1979 state about breaches?
If the breach is slight, it may only be treated as a breach of warranty, limiting remedies to damages ## Footnote This alters the automatic classification of breaches.
80
What is a breach of warranty?
A breach of warranty allows the buyer to claim damages only.
81
How does the Consumer Rights Act 2015 differ in its approach to implied terms?
It provides rights to reject goods under certain circumstances for terms like satisfactory quality, fitness for purpose, and correspondence with description.
82
What is a repudiatory breach?
A repudiatory breach occurs when a party commits a breach of a condition, allowing the innocent party to treat the contract as repudiated.
83
What can the innocent party do in response to a repudiatory breach?
The innocent party can terminate the contract or accept the repudiatory breach.
84
What is the significance of time in performance or completion of a contract?
Time can be classified as essential or non-essential, affecting whether lateness constitutes a repudiatory breach.
85
What does 'time is of the essence' mean?
It indicates that lateness will amount to a repudiatory breach, allowing termination of the contract.
86
How can time become of the essence if it is not initially stipulated?
By serving a notice on the defaulting party stating a reasonable completion date.
87
What are the three classifications of contract terms?
* Conditions * Warranties * Innominate terms
88
What happens if a party breaches a condition?
The innocent party can treat the contract as repudiated and terminate it.
89
What is the remedy available for a breach of warranty?
The only remedy is to sue for damages.
90
What distinguishes a condition from a warranty?
A condition is an important term 'going to the root of the contract'.
91
What are innominate terms?
Terms that are neither conditions nor warranties; the remedy depends on the seriousness of the breach.
92
What does a breach of an innominate term allow for?
If minor, only damages can be claimed; if serious, the contract can be treated as repudiated.
93
How does statute influence implied terms?
Statutes typically specify whether implied terms are conditions or warranties and may modify available remedies.

Contract Law (7 decks)

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