Terms of the contract two preliminary issues: Two preliminary issues

- But how to prove the intention of the parties?

- Through objective test and totality of evidence rule.

Three cases to illustrate…

Three cases to illustrate…

Oscar Chess ltd v. Williams [1957] 1WLR 370, CA

• Defendant sold a car that was a 1948 Morris model to Oscar but ten months later, they found out that it was 1939 model.
• The question: Was the statement about the year of the model a term or was it simply a statement that had induced the other party to enter into the contract?
• The Court of Appeal concluded that the defendant’s statement was not a term but only an innocent misrepresentation.
• But why?

Dick Bentley Productions Ltd v. Harold Smith (Motors) Ltd [1965] 1 WLR 623, CA

• Car dealer (Mr. Smith) sold a car to Bentley and said that there was 20,000 mileage on the car, and this was later found to be untrue. Bentley sued for breach of warranty.
• The case showed that a statement made by a dealer in relation to the goods sold will generally be held to be a term of the contract and damages be compensated