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Contract: Express and Implied Terms

Representations and terms

  • 3 things to know
  • Components 2 and 3

Overview

Term of a contract, mere puff and collateral contract.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What is a term of a contract?

Key term

What is a representation?

Key term

Why does the difference between a term and a representation matter?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a term of a contract?

    Model answer

    A term is a statement that forms part of the contract and creates a binding obligation. Breach of a term gives rise to a claim for damages.

  2. 2

    What is a representation?

    Model answer

    A representation is a statement of fact made to induce the other party to contract. A representation does not become part of the contract itself.

  3. 3

    Why does the difference between a term and a representation matter?

    Model answer

    Breach of a term is a breach of contract with damages as of right. An untrue representation gives rise instead to a claim for misrepresentation.

  4. 4

    What is a mere puff?

    Model answer

    A mere puff is advertising boast that no reasonable person would take seriously. A puff creates neither a term nor an actionable representation.

  5. 5

    How does the importance of a statement affect its status?

    Model answer

    Bannerman v White (1861) treated a statement about sulphur in hops as a term. The buyer had made clear that he would not contract if sulphur had been used.

  6. 6

    How does the relative knowledge of the parties affect the distinction?

    Model answer

    Oscar Chess Ltd v Williams [1957] held that a private seller's statement about a car's age was a representation. The seller relied innocently on the registration book and had no special expertise.

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Parliamentary and European Law Making
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A Public Bill changes the general law.
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