Terms Of A Contract

Question 1

Terms of a contract

Answer 1

• the terms of a contract are the contents of a contract, and state the parties’ legal duties and obligations to each other
• terms may be oral, written review or even implied
• failure to comply with an obligation could result in the wronged party to claim damages or treat the contract as ended

Question 2

Terms of a contract must be certain

Answer 2

• terms agreed must not be too vauge or incomplete
• courts will have regard to what a reasonable person would think is a certain term

Question 3

Expressed and implied terms

Answer 3

• Express terms - those actually stated (e.g. a dealer says the mileage of a car is 50 miles)
• Implied terms - terms may be implied by a statute (e.g. Sale of Goods Act 1979), trade customs, the courts

Question 4

Condition

Answer 4

fundamental term of the contract (e.g. you have a gluten allergy, need to buy a gluten free cake. If that person did not adhere to your terms you can seek compensation, for example)

Question 5

Warranty

Answer 5

minor term (e.g. if it is breached, the injured party can claim damages but cannot terminate the contract)

Question 6

Innominate term

Answer 6

Terms that cannot be assigned to either category

Question 7

Pre-contractual statement

Answer 7

when the parties are in the process of negotiating a contract, many statements may be made
They can fall into 3 types:
- traders hype or puff (an exaggeration)
- a representation
- a term of contract