This chapter discusses the nature and import of contractual terms and the form which they may take. First, it distinguishes the terms of a contract from representations, which are statements made by one party to the other that are not intended to be an integral part of the agreement. Similarly, collateral warranties, which are preliminary assurances that are contractually binding, but not as part of the principal agreement, are distinguished from representations which are not contractually binding. Second, the importance of different types of terms is examined by reference to the distinction between conditions, warranties, and innominate terms. Third, the implication of terms into contracts is explored. Finally, the chapter considers the interpretation or construction of terms.
Chapter
5. The Terms of the Contract
Jack Beatson, Andrew Burrows, and John Cartwright
Book
Mindy Chen-Wishart
Contract Law offers a new approach, utilising diagrams and commentary boxes to complement the text. The book explains the intricacies of contract law by reference to the questions that arise during the life of a contract. Part I of the book introduces contract law. Part II looks at contract formation: the finding of agreement and meeting the criteria of enforceability. Part III focuses on the position of third parties who may benefit or be burdened by the contract. Part IV considers the reasons for allowing a party to escape the contract, namely the vitiating factors of misrepresentation and non-disclosure, mistake, frustration, duress, undue influence, and unconscionability. Part V looks at how to determine the contents of contracts: express, implied, and collateral terms, and examines their interpretation and enforceability. Part VI considers the breach of a contract and the availability of the remedies of termination, damages, and specific and agreed remedies. Part VII examines whether obligations of good faith should be recognised in current contract law and how that might affect the way we understand contract law.
Chapter
7. Interpreting the terms
Construction, rectification, and mutual mistake
This chapter considers how the courts make sense of contracts whose terms are capable of more than one interpretation. It begins by discussing two broad approaches to construing contracts, both of which have influenced English law and both of which continue to form part of the law: literalism and contextualism. It then examines the role English law currently assigns to literalism and contextualism and how the courts decide which to apply, with particular emphasis on the Investors rule and contextual readings. It also evaluates an alternative remedy known as rectification and concludes with an analysis of the limits of construction and the law of mutual mistake.
Chapter
4. Terms of the Contract
The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary, and other features. This chapter explores the terms of the contract. It contains questions and answers concerning express and implied terms, how terms are to be identified, and how they are to be classified in order to determine what consequences flow from their breach. The chapter also considers two key debates: the basis on which the courts imply terms into contracts, and whether the courts approach the classification of terms highlights a tension in the law between certainty and justice.
Chapter
5. Content of the contract and principles of interpretation
Robert Merkin KC, Séverine Saintier, and Jill Poole
Course-focused and comprehensive, Poole’s Textbook on Contract Law provides an accessible overview of the key areas of the law curriculum. This chapter explores how the terms of the parties’ agreement (that is, the contractual promise to be performed) are identified and how the courts interpret the meaning of those terms. It considers the status of statements made prior to the conclusion of the contract (as terms or representations) and why this matters. The parol evidence rule applies where the contract is written and provides that the writing represents the entire contract. This definition is flawed, however, because it allows the rule to be sidestepped by defining the contract as partly written and partly oral. Alternatively, an oral term can take effect as a collateral contract, which is separate to any written contract to which the parol evidence rule applies. The effect of the parol evidence rules can be achieved by incorporating an entire agreement clause. This chapter also considers the effect and impact of a no oral modification clause (or NOM). This chapter examines methods of achieving incorporation of terms such as signature, reasonable notice (or a higher standard of notice if the term is onerous or unusual), consistent course of dealing and common knowledge of the parties. In addition to the express terms, there may be terms implied by custom, by courts or by statute. Finally, the chapter considers the principles on which contracts are interpreted including the relevance, or otherwise, of pre-contractual negotiations.
