This is an extract of our Incorporation Of Supplementary Terms document, which we sell as part of our GDL Contract Law Notes collection written by the top tier of Cambridge/Bpp/College Of Law students.
The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Contract Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
INCORPORATION OF SUPPLEMENTARY TERMS
Those which increase the responsibility inherent in the contract's performance, typically through the addition of a positive guarantee of some kind.
o Representations - these remain outside the contract
Warranties - contractual term, the breach of which allows a claim for damages.
The basic test for whether an assurance has become part of the contract is whether the parties intended that it should do so.
o Heilbut v Buckleton  - shares in a rubber company.
Holt CJ: no fixed test. "The intention of the parties can only be deduced from the totality of the evidence, and no secondary principles of such a kind can be universally true"
As a result a large number of subsidiary tests have developed:
o Bannerman v White (1861) - Plaintiff produced note assuring that no sulphur had been used on cultivating the crop. Held this was a term of the contract.
o Oscar Chess v Williams  - part exchange, D got new car from P in exchange for his old 1948 model (confirmed date in reg book). Later transpired it was a 1939 model, P
Held this was a representation, a statement of belief not a contractual promise. The plaintiffs knew that the defendant had no greater knowledge of the car's date of manufacture than they had themselves.
Matter of intention, and placement of parties to provide guarantee.
Morris LJ, dissenting, considered that the age of the car was a vitally important matter, and therefore a condition of the contract.
o Dick Bentley v Harold Smith (Motors)  - Bentley asked car-dealer to find him a 'well-vetted' Bentley. D found one stating it had only done 20k miles since new engine was fitted. It had in fact covered many more.
Held this was a warranty. Denning MR: If an intelligent bystander would reasonably infer that a warranty was intended, that will suffice.
A statement will more readily be found to be a term of the contract if it is made by a person who, to the knowledge of both parties, is well-placed to guarantee its accuracy.
o Schawel v Reade  - Prospective buyer of a horse was told by the seller that he need not continue to examine the animal because if anything were wrong the seller would have informed him
Lord Moulton that there could be no clearer evidence that the statement was meant as a term of the contract.
Buy the full version of these notes or essay plans and more in our GDL Contract Law Notes.