iv. STATEMENTS MADE DURING NEGOTIATIONS In addition to the express terms of the contract, sometimes additional terms are added orally, depending on the terms (as observed by an objective bystander): – A mere ‘puff’ or exaggeration is not expected to be contractual (Carlil v Carbolic Smoke Ball) – Mere representations are non-contractual (JJ Savage & Sons Pty Ltd v Blakney) – Contractual terms are enforceable (also known as ‘warranties’) When such new promises are added to the ‘main’ contract, they are known as a collateral contract. In assessing whether a statement is a mere representation or a warranty (promise), the courts will consider: – Language – Expertise of the parties – Importance of the statement – Timing of the statement – Form of the written contract
The most concise and updated Contract Law Study Notes for Australian Law Students.
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Approximately 21972 words over 50 pages. Prepared in 2022.