c Existence of the written contract If there is a written agreement and the

C existence of the written contract if there is a

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c. Existence of the written contract If there is a written agreement and the statement is not included in the agreement, the statement will be considered as a representation. Since, if the statement is important, it should be included in the contract. In the case, Routledge v Mckey , the court held Downloaded by Adli Hakim ([email protected]) lOMoARcPSD|4226454
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that it was merely a representation also because the model of the motorbike 1942 was not stated in the contract. d. Knowledge and expertise of the maker of statement If the maker of the statement has special knowledge or skill to ascertain the statement than the receiver of the statement, the statement he made will be considered as term of the contract. This principle can be distinguished with the below two cases: i. Dick Bentley Productions v Harold Smith In this case, the second defendant told Smith that he was looking for a well vetted Bently car. Then Smith told the second defendant that he was in the position of looking for the history of the Bentley car. The S.P bought the car from Smith, since the speedometer showed 20,000 miles, the second defendant trusted Smith. However, the car’s mileage was actually 100,000 miles. The car always not functioning and had to bring back to Smith for repairs. The SP alleged that there was a breach of contract. Court held that there was a breach of contract and the statement was a term of the contract. Since Smith had the special knowledge and was in a position to find out the history of the car, he didn’t do so, he was liable for the breach of contract and had to compensate the damages suffered by the SP. ii. Esso Petroleum v Mardon Plaintiff negotiated with the defendant for granting him the tenancy of an Esso station, during the negotiation an esso representative who had 40years of experience in petrol told the defendant that Esso estimated the throughput of petrol would reach 20,000 gallons of petrol a year in the third year of operation. In fact, the annual throughput was only 7000 gallons, the plaintiff sent a writ to the defendant when he could not pay for the petrol supplied by the Esso, then the defendant counterclaimed for damages, alleged that it was a breach of warranty. The court held that there was a breach of warranty for the plaintiff to the defendant since the representatives of the Esso had 40years of experience in petrol, he had the special knowledge and in a better position that the defendant to make a forecast. 2. With reference to decided cases, explain the Parol Evidence Rule and all of its statutory exceptions. The parol evidence rule prohibits a person from adducing oral evidence where the terms of the contract have been put into writing. This means, there is a written agreement exists between two parties, the court will not allow the parties to adduce extrinsic evidence that might vary or contradict to the terms of the written document.
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