Contract lawLesson 1 of 3 in the course Terms, misrepresentation and vitiating factors

Contract Terms, Negotiation Statements, Implied Terms, and Conditional Agreements

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

A contractual term is a provision that forms part of a contract and creates an obligation. This lesson introduces the role of terms, distinguishes express terms from other statements, and explains the main ways terms are classified.

A contractual term is any provision forming part of a contract. Each term gives rise to a contractual obligation, and breach may give the other party grounds to seek a legal remedy. Terms set out what the agreement requires the parties to do.

All flashcards

What is a contractual term?
A provision forming part of a contract that creates an obligation; breach may give rise to a legal remedy.
What is an express term?
A term stated by the parties during negotiations or included in a contractual document.
How do conditions and warranties differ?
A condition is fundamental and breach may allow termination and damages; a warranty is less essential and breach generally permits damages without termination.
What is an innominate term?
A term whose consequences depend on the nature and seriousness of the particular breach.
What is a term implied in law?
A term incorporated into a recognized category of relationship or by statutory rules, rather than inferred only from one contract’s circumstances.

Quiz questions

  1. Why can a speaker’s expertise matter when a court decides whether a statement became a contractual term?Answer: Expertise can indicate whether the speaker could verify the statement and intended to guarantee it.
  2. What is the significance of omitting an important spoken assurance from a written contract?Answer: The omission supports treating it as a representation, but does not conclusively prevent it from being a term.
  3. For a term to be implied in fact under the business-efficacy approach, what is generally required?Answer: The term must be necessary for the contract to work effectively, not merely make it more convenient.
  4. In one category of “subject to contract” arrangements, what do the parties intend?Answer: They are immediately bound, with a later formal document intended to restate the agreement without changing its effect.
  5. What is a condition subsequent in a contract?Answer: An event or condition that can end or remove an obligation according to the contract.

Based on the Wikipedia article Contractual term, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

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