The nature of terms can be determined as a subject of any contract, which is to be set out. A term allows two parties having a binding obligation,. This allows them to perform a contract. The distinction between terms and representations can be stated as two different issues. This is because a term is an obligation, which is set up, and a promise that has to be obeyed. A representation is considered, as   persuading the other party to agree into a contract. This does not include a part contract. When classifying, it cannot be recognised that a term can be opposed to representation; this would include the type of words used. An example is “this car is a two year old model, this statement is capable of being either of the terms. The actual content shows a term that is seen as reliable and factual compared to representation. To a certain degree the statement can be classified as a term, so it has the right for the damages for its breach. When it is a representation that turns into being untrue there is no automatic remedy available.

However, it can be seen as a dispute arising, when the determination for the courts to adopt the objective analysis and intentions of the two parties. At this stage it can be verified that the courts have difficulties in examining the two terms. In the development of the courts they have created a checklist that helps to encounter a statement, that is a term or representation. This list would consist of the limited amount of factors. These factors are used to help the courts distinguish between terms and a representation. When incorporating and expressing terms it is important that the more reliable evidence attached the more likely it is to be a term as seen in Birch v Paramount.

The first factor, which is stated as the timing of the statement. This is considered as the length of time. This shows when a statement of agreement was brought forward and when it will be concluded. This considers that the time elapses between the statements and to show if the certain agreement is classified as a term or a representation, as shown in Bannerman v White. This case was seen to be a term and also two parties had understood the statement laid out during the agreement. The conclusion that was brought forward had stated that the contract was a part of a single transaction. Then moving to representation the case of Routledge v Mckay, it   was illustrated that the buyer had claimed for damages and breach of warranty. It was held that the relationship between the two parties was too wide this is because one can consider that the interval that was set out with the statement. It was later on considered, that at the beginning they did not take into account the consideration of the case. Which proved to be a major consequence for the whole case.

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Another factor is the importance of the statement. This is seen as the importance of the attached statement, which is produced by the parties. As a matter of importance if a certain statement, is a term, it does have some sort of importance attached to it. Here the injured party would have not entered into a contract; it is illustrated in the case of Couchman v Hill .  In basic terms it is seen that if the statement is convincing and strong enough then it is considered as a term. The strength of the inducement is seen as a ...

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