Chapter 3: Content of contract

1.       

       Express term

o   A statement may be an express term of contract or an representation including its formation.

o   A condition is vital term, going to the root of contract , breach of the which normally entities the innocent party to treat the contract as an end and to claim damages.

o   A warranty is term which subsidiary to main purpose of the contract, breach of which only entities innocent party damages.

2.             

     Implied term:

o   Implied by custom, court and statuary provisions.

o   Custom: the parties are presumed to have contracted by reference to the customs prevailing in the trade or locality in question.

o   Court: give full effect to the intuition of the parties.

3.        

     Standard contracts

o   Such as air-travel, banking, insurance contact.

o   It is binds temporarily or specific period.

4.      

      Exemption clause

o   Term in contract which seeks to exempt one of the parties from liability.