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Contract: Terms

  • 7 subtopics
  • 20 things to know
  • A2 Units 3 and 4
  • Law of Contract, one of three A2 areas of which two are studied

What Contract: Terms covers

Contract: Terms is examined in A2 Units 3 and 4 — Contract Law, one of three areas of which a student studies two. Unit 3 applies these rules to a scenario and Unit 4 evaluates them.. It covers representations and terms, express terms, incorporation and the parol evidence rule, implied terms, conditions, warranties and innominate terms, exclusion clauses and their construction, statutory control of exclusion and unfair terms and evaluating the law on contract terms.

Where it is assessed

A2 Units 3 and 4

the law of contract — one of three areas of which two are studied, applied in one paper and evaluated in the other.

Check the WJEC specification ↗

The 7 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

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Key term

How does a court decide whether a statement is a term or a representation?

Numbers

Why was the statement in Oscar Chess v Williams (1957) held to be a representation?

Numbers

How can a collateral contract give effect to a statement left out of the main agreement?

Key term

What does the Consumer Rights Act 2015 imply into a consumer contract for a service?

Key term

What approach did Hong Kong Fir Shipping v Kawasaki Kisen Kaisha (1962) take to the seaworthiness obligation?

Numbers

Which contractual terms are classified as conditions by statute in a business sale of goods?

Key term

How does section 15A of the Sale of Goods Act 1979 restrict a business buyer's right to reject?

Process

State the three stages a court works through when a party relies on an exclusion clause.

Key term

Which consumer rights may a trader never exclude under the Consumer Rights Act 2015?

Key term

State the case for retaining the rule that a signature binds.

Key term

State the case for separating the consumer regime from the business regime.

Key term

Does the reasonableness test give parties enough guidance? Argue both ways.

Key term

What is an express term?

Key term

What did Thornton v Shoe Lane Parking (1971) decide about a term displayed inside a car park?

Key term

How do terms implied by law differ from terms implied in fact?

Evaluation

Distinguish an exclusion clause from a limitation clause.

Numbers

Which statute controls exclusion clauses in consumer contracts and which controls them between businesses?

Key term

What did Liverpool City Council v Irwin (1977) imply into a tenancy of a tower block?

Key term

Why does an onerous exclusion clause require more prominent notice than an ordinary term?

Key term

What does section 2 of the Unfair Contract Terms Act 1977 provide about liability for negligence?

Take Contract: Terms further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Exclusion clause vs Limitation clause

    Exclusion clause: removing liability for a breach altogether. Limitation clause: admitting liability but capping the sum recoverable or restricting how a claim may be made.

  • Terms implied in fact vs Terms implied by law

    Terms implied in fact: reflecting what these particular parties must have intended in their own agreement. Terms implied by law: attaching to every agreement of that type as an incident of the relationship.

  • Sale of Goods Act 1979 vs Consumer Rights Act 2015

    Sale of Goods Act 1979: governing a transaction between two businesses or between two private individuals. Consumer Rights Act 2015: governing a transaction by a trader with an individual buying outside their business.

Questions from this topic

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 itself, so that a party who fails to comply with it is in breach of contract.

  2. 2

    What is a representation in the law of contract?

    Model answer

    A representation is a statement made during negotiations that induces the other party to contract but does not itself become part of the contract.

  3. 3

    Why does it matter whether a statement is a term or a representation?

    Model answer

    Breach of a term gives a right to damages as of right and may allow the innocent party to terminate, whereas a false representation gives a claim in misrepresentation with rescission and damages assessed on a different basis.

  4. 4

    How does a court decide whether a statement is a term or a representation?

    Model answer

    The court asks objectively what the parties must have intended, weighing the importance attached to the statement, the relative knowledge of the parties, the interval before the contract was made and whether the statement was written into the agreement.

  5. 5

    What did Bannerman v White (1861) decide about the importance of a statement?

    Model answer

    It decided that where the buyer made clear he would not buy hops treated with sulphur, the seller's assurance that none had been used was so important to the bargain that it was a term.

  6. 6

    Why was the statement in Oscar Chess v Williams (1957) held to be a representation?

    Model answer

    The private seller honestly relied on the registration document in describing the car as a 1948 model, and since he had no special knowledge of cars the buyer, a dealer, was in the better position to check, so the statement was not a term.

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Contract: Terms revision questions

What does Contract: Terms cover in WJEC A-Level Law?
7 subtopics: representations and terms, express terms, incorporation and the parol evidence rule, implied terms, conditions, warranties and innominate terms, exclusion clauses and their construction, statutory control of exclusion and unfair terms and evaluating the law on contract terms. Each one has its own page with questions and model answers.
How is Contract: Terms organised?
By the WJEC 603-1978-1 specification, subtopic by subtopic, so it matches the order you are taught it in.

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