What are pre-contractual representations?
In the context of pre-contractual negotiations, for a representation to lead a person into error it must act as an inducement. That is, it must be the thing that prompts the parties to enter into contractual relations. Representations which merely cause confusion cannot be categorised as misleading or deceptive.
What are the three types of contractual conditions?
Types of Conditions Conditions precedent, conditions concurrent, and conditions subsequent are types of conditions that are commonly found in contracts. A condition precedent is an event that must exist as a fact before the promisor incurs any liability pursuant to it.
What is a statement made pre-contract with the intention to induce a contract but is not a contractual term?
A representation is a statement which induces the contract but does not form part of it. If the representation was untrue at the time it was made, the injured party will be able to bring an action for misrepresentation.
How are conditions classified?
Conditions are either (1) Particular or (2) General. A Particular Condition refers to a definite act or series of acts occurring at some definite time. A General Condition refers to any one of a class of acts which may occur (or may have occurred) at any time.
What are the different classifications of the terms of a contract?
The terms will be of two kinds: 1) Express terms: these are laid down by the parties themselves; 2) Implied terms: these are read into the contract by the court on the basis of the nature of the agreement and the parties’ apparent intentions, or on the basis of law on certain types of contract.
Why is it important to distinguish between a representation and a pre contract statement which has become a term of the contract?
It is important to know whether a particular statement is a contractual term or if it is a representation as this will determine the appropriate cause of action and remedy available. If the statement amounts to a term of the contract which is not fulfilled, the innocent party may sue for breach of contract.
How may terms be implied into a contract?
Intention of the Parties In other words, a Court will imply a term into a contract if, in the Court’s opinion, it is apparent from the facts that the parties must have intended that term to form part of that contract. The intention of the parties is ascertained from an objective viewpoint.