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BTF1010 Week 4 Lecture Notes - Coggle Diagram
BTF1010 Week 4 Lecture Notes
The Terms of the Contract
Term = Rights of the parties to a contract.
They are generally worked out by looking at the agreement.
2 Types of Contractual terms.
Implied terms = Terms not specifically agreed to, but still part of contract.
Express terms = Terms that parties specifically agree to.
To identify these, we look at terms in offer.
Different Types of Express Terms
1) Conditions: Terms that are fundamental to contract (highest importance).
2) Warranties: Terms of lesser importance, but still legally binding
3) Innominate: Terms are neither, until the effect of their breach is known.
Types of Pre-Contractual Statements
Mere puffs
Exaggerated talk
Representation
Statements of fact that activate the contract
Terms
Legally binding promises that are part of contract
The Parol Evidence Rule
Where the parties intended their written contract to contain all the agreed terms, evidence of other terms will not be allowed.
Collateral Contracts
Second oral contract
These are an exception to the Parol Evidence Role.
How are express terms incorporated into a contract?
2 ways how express terms are in a contract
Signature
When signed, parties are bound by terms.
Reasonable notice
No signed document.
Exclusion Clause
A clause that purports to limit/exclude one party's liability for loss incurred by the other.
Interpretation of Contractual Terms
Interpretation
What does the contract actually require parties to do.
What terms actually mean.
Contra Proferentum
Parties do not have equal bargaining power.
Negligence Exclusion Clauses
Negligence = Lack of care
Terms in Online Contracting
See if contract has been signed
Click as signature
Click and browse
Implied Terms
Implied terms = Unwritten terms that law of custom forces you to do.
Terms are implied by...
Court (common law)
Custom (common law)
Parliament (statute)