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 NEEDTO VERIFY)1)Schawel v Reade (1913),the seller told the buyer, who wished to buy the seller’s horse for studpurposes, that the horse was perfectly sound and that the buyer need not look for anything thatcould be the matter with the horse. The buyer successfully sued the seller for breach of contractupon discovering that the horse was totally unfit for stud purposes. Likewise, _____ had told _____ he need not verify the statementthat he had made. The Defendantmade 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 TOVERIFY)2)Ecay v Godfrey (1947),where there was a request to verify being made. During the pre-contractualnegotiation, the defendant, seller told the buyer that the boat did not have any flaws and went onto invite the buyer to have the boat inspected. The buyer did not have the boat inspected and afterthe sale, the buyer found flaws in the boat. He sued for breach of contract. The court rejectedthisclaim holding that the seller’s statement as a representationand not a term.Likewise, _____ had told _____ to verify the statement that he/shehad made. The “defendant”made a “statement”and qualified it by telling the partyto get an independent verificationto satisfyhimself. Hence, the statement would be held as a representationand not a term. Might lead off to a misrepresentation argument if applicable1
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 assuredhim there was no sulphur, but it was not the case. Buyer sued for breach of contract. Court held thatthe assurance of the hops being free of sulphur was a term. The statement made was so importantthat the party would not have entered the contract if it was not made.