His intention here was Downloaded by Adli Hakim

His intention here was downloaded by adli hakim

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any financial liability although he had used it for two months. His intention here was Downloaded by Adli Hakim ([email protected]) lOMoARcPSD|4226454
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not sueing the plaintiffs for damages suffered from the contract but wanted to terminate it by relying on the collateral warranty which is actually considered as collateral contract. The action of the defendant wanted to terminate to contract by depending on the collateral contract had already went to the root of the main agreement. If the contention of the defendant to return back the two machines without any financial liability was accepted the effect of the alleged collateral contract would be to obliterate the main contract of sale or to convert it into a conditional contract. There cannot be a collateral contract without the main contract being in existence. a. Term (definition) b. Parol evidence rule S91 +92 - (exception s92 (b)) c. Proviso B [ case] d. Collateral contract [ 2requirements+ case] Elements D. With reference to decided cases, explain Terence’s arguments and critically discuss whether the statements can be legally binding. Whether the statements can be legally binding 1. Terms and representations (4 guidelines +cases) 2. Parol Evidence rule s91 +s92 (case law) 3. Exceptions b n c (statutory) 4. Common law : collateral contract (cases) O99k Downloaded by Adli Hakim ([email protected]) lOMoARcPSD|4226454
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