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Chapter 9 - Contract law (Part 3). At the end of this chapter you should understand: the tests that determine whether a statement is a term of a contract, the difference between a condition and a warranty, conditions precedent and conditions subsequent and be able to provide examples, express and implied terms,. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 9- Copyright © 2000 McGraw-Hill Australia Contract Law Part 3 Chapter 9 Express terms of contract statements (made throughout negotiations) Dependant upon: Time statement made Form of statement Special skills and expertise being relied upon Intention of parties, resulting in Mere representation Term of contract (collateral contract) 9- Copyright © 2000 McGraw-Hill Australia Express terms of contract statements (made throughout negotiations) Resulting in Mere representation Term of contract No damages BREACH Damages Warranty Condition i.e. term of vital importance TEST: Did party enter contract because of term? NO YES Damages Damages Rescinds contract 9- Copyright © 2000 McGraw-Hill Australia Conditions Precedent condition: A term that must be satisfied before the contract can be enforced. Subsequent condition: Term of contract that will terminate the contract due to an event, or act of a party to the contract, occurring. 9- Copyright © 2000 McGraw-Hill Australia Implied terms By Courts (Officious Bystander Test) Reasonable and equitable Contract ineffective otherwise So obvious didn’t need to be included Clearly expressible Not contradictory to other terms By Statute Law Trade Practices Act 1974 (Cwlth) By Custom or Trade Usage Certain, reasonable, notorious Not contradictory to express terms Not contradictory to statutory restrictions 9- Copyright © 2000 McGraw-Hill Australia Exemption and exclusionary terms Ticket Cases Test: Is exemption clause a term of the contract? (Reasonable Person Test) - Receipt (No exemption) - Document with contractual terms (exemption). Notice of clause before or at time contract is made. Non-Ticket Cases Exemption clause is a term of the contract. Notice of clause before or at time contract is made. 9- Copyright © 2000 McGraw-Hill Australia Doctrine of privity on contract Only parties to a contract can sue or be sued . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 9- Copyright © 2000 McGraw-Hill Australia Contract Law Part 3 Chapter 9 Express terms of contract statements (made throughout negotiations) Dependant upon: Time statement made Form of statement Special skills and expertise being relied upon Intention of parties, resulting in Mere representation Term of contract (collateral contract) 9- Copyright © 2000 McGraw-Hill Australia Express terms of contract statements (made throughout negotiations) Resulting in Mere representation Term of contract No damages BREACH Damages Warranty Condition i.e. term of vital importance TEST: Did party enter contract because of term? NO YES Damages Damages Rescinds contract 9- Copyright © 2000 McGraw-Hill Australia Conditions Precedent condition: A term that must be satisfied before the contract can be enforced. Subsequent condition: Term of contract that will terminate the contract due to an event, or .
