Contractual terms or Representations?

Terms or Representations

the courts have developed tests to help them distinguish between terms and representations

• does the representor (statement maker) have special knowledge?

If yes, it is more likely to be a term

**** Bently Production v Harold Smith Motors

the court held the statement about the car was a term as the defendant was a car dealer who had greater expertise that the claimant relied on

Oscar Chess v Williams

held: the statement relating to the age of the car was not a term but a representation. The representee (statement receiver) Oscar Chess LTD as a car dealer had the greater knowledge and would have been able to check out the statements validity easily

• does the representee place special importance on the issue?

Bannerman v White

held: the statement that the hops has not been treated with sulphur was a term of the contract rather than a representation as…