Express and Implied Terms · Contents . Pre-Contractual Statements · Express Terms . Implied Terms . Pre-Contractual Statements . Statements made prior to the consummation of a contract. Questions arise when there are disputes as to whether or not the statements were intended to form part of the contract. . If such a statement amounts to a promise which forms part of the contract, a party in breach will be liable for the full range of contractual remedies. · If a statement turns out not to be a term (ie not part of the contract), and turns out to be untrue, it may still give rise to remedies, but on a restricted basis. Pre-Contractual Statements contd. Approach of the courts: . Intentions of the parties-did the parties actually intend the statement to be contractually binding? · Detached objectivity- what would a reasonable third party have taken the parties to have intended? · In determining these, the courts consider a number of factors. . Pre-Contractual Statements contd. Factors: • Importance - Bannerman v White (1861) • Writing - note 'parole evidence rule'- but cf Evans & Son Ltd v Andrea Merzario (1976) • Reliance on skill/knowledge-Dick Bentley Prod. v Harold Smith Motors Ltd (1965); Oscar Chess Ltd v Williams (1957) • Lapse of time - Routledge v Mckay (1954) . Remedies for Pre-Contractual Statements · Misrepresentation remedies (next week's lectures). · Collateral contract remedies- City of Westminster Properties v Mudd (1959); Esso Petroleum Co Ltd v Mardon (1976). · Negligent misstatement remedies. · Express Terms · Incorporation Interfoto Picture Library v Stiletto Visual Programmes (1988) - notice needed for unusual clauses · O'Brien v Mirror Group Newspapers (2001) · Express Terms contd. · Construction Parol evidence rule - note exceptions: · Ambiguity - Robertson v Jackson (1845)
· Incomplete - Allen v Pink (1838) · Custom - Smith v Wilson (1832) "Purposive", rather than literal, interpretation . Investors Compensation Scheme Ltd v West Bromwich Building Society (1998) - consider the "factual matrix" in which the contract made . BCCI SA v Ali (2001); Chartbrook v Persimmon Homes Ltd (2009) · Implied Terms · Common Law - Terms implied in fact Custom - Hutton v Warren (1836) · Business necessity- The Moorcock (1889) "Officious bystander" - · Shirlaw v Southern Foundries (1939) . Wilson v Best Travel Ltd (1993) · Griggs Group Ltd v Evans (2005) · Equitable Life Assurance Society v Hyman (2003) · Implied Terms contd. · Common law - Terms implied by law Liverpool City Council v Irwin (1977) Shell v Lostock Garages (1977) . Malik v BCCI (1998) · Implied Terms contd. Terms implied by Statute- . Sale of Goods Act 1979 · s 12 - right to sell (title) · S 13- description · s 14(2) - satisfactory quality · s 14(3) - fitness for special purpose . S 15 - compliance with quality of sample · Supply of Goods and Services Act 1982 · Categorisation of Terms · s 13 - services must be supplied with