Template for Terms and Exemption Clause.docx - Terms Of Contract The legal issue at hand is to determine if can claim for damages against for a

Template for Terms and Exemption Clause.docx - Terms Of...

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Terms Of Contract The legal issue at hand is to determine if _____ can claim for damages against ______ for a contractual breach and terminate his/her contract. Step 1: Examining the pre-contractual statements (Puff, representation, term) We have to first examine whether the pre-contractual statement “_________” made is intended to be a term and part of the contract, or was it a mere representation, puff or opinion. If the statement which forms a term turns out to be untrue or unfulfilled, then it will allow the other party to sue for breach of contract. To distinguish between a term and representation, we can refer to various guidelines to identify the intention of the contracting parties such as (1) request to verify (2) importance of statement (3) timing of statement (4) written statements (5) special skill and knowledge. Based on the facts of the given case, it is similar to the case of: Request to verify [TERM] ( TOLD BUYER NO NEED TO VERIFY ) 1) Schawel v Reade (1913), the seller told the buyer, who wished to buy the seller’s horse for stud purposes, that the horse was perfectly sound and that the buyer need not look for anything that could be the matter with the horse. The buyer successfully sued the seller for breach of contract upon discovering that the horse was totally unfit for stud purposes. Likewise, _____ had told _____ he need not verify the statement that he had made. The Defendant made a false statement “_______” and told the Plaintiff he need not verify “_____” during the pre- contractual negotiation. Hence, the statement would be held as a term . [REPRESENTATION] ( TOLD BUYER TO VERIFY ) 2) Ecay v Godfrey (1947), where there was a request to verify being made. During the pre-contractual negotiation, the defendant, seller told the buyer that the boat did not have any flaws and went on to invite the buyer to have the boat inspected . The buyer did not have the boat inspected and after the sale, the buyer found flaws in the boat. He sued for breach of contract. The court rejected this claim holding that the seller’s statement as a representation and not a term . Likewise, _____ had told _____ to verify the statement that he/she had made. The “defendant made a “statement and qualified it by telling the party to get an independent verification to satisfy himself . Hence, the statement would be held as a representation and not a term. Might lead off to a misrepresentation argument if applicable 1
Importance of the statement [TERM] ( REQUIREMENT FROM CUSTOMER/IMPT STATEMENT ) 1) Bannerman v White (1861), Buyer emphasized he will only buy hops without sulphur. Seller assured him there was no sulphur, but it was not the case. Buyer sued for breach of contract. Court held that the assurance of the hops being free of sulphur was a term . The statement made was so important that the party would not have entered the contract if it was not made.

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