ACCA LW · Chapter 3 · Question 10 of 10
A statement made during negotiations is classified as a representation rather than a term. Which factor would most strongly suggest that a statement is instead a term of the contract?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The maker of the statement had special knowledge or skill compared with the other party
Explanation
Courts consider the importance of the statement, the timing, whether it was later reduced to writing and the relative knowledge of the parties. In Dick Bentley Productions v Harold Smith Motors a dealer with special knowledge was held to have given a term, whereas in Oscar Chess v Williams a private seller's statement was a mere representation. A long interval, omission from the written contract and an invitation to verify all point towards a representation.
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