Law of Contract: Representation, Misrepresentation, Promissory Estoppel and Exclusion Clause

Running head: LAW OF CONTRACT
LAW OF CONTRACT
Name of the Student
Name of the University
Author Note

LAW OF CONTRACT1
Answer 1
Issue
The issue in this case is that can any of the statements made by Jimmy, regarding
MowMaster 6000, be considered as a part of the contract of sale.
Rule
When a statement is being made by an individual in relation to a contract then such
statement can be classified under four categories. They are representation, opinion, puff and the
term of a contract. Puffery shall be distinguished from the rest as the criteria of statements which
cannot be included in a contract. Puffery are considered to be the statements that are exaggerated
in order to make the purchasers excited regarding the purchasing of a particular objects.
Whereas, representations are considered as knowledge regarding the object that shall be sold.
Puffery may not be included in the contract, however, opinion or representation or the terms of
contract shall be included in the contract.
In the case of Watson v. Foxman (19951), McLelland, CJ, stated that the human memory
cannot always comprehend about the statements and declarations made during normal
conversations. It becomes frail and imperfect and usually such unreliability increases as the time
passes.
The rule in the case of Fox v Percy (2003) 2014 CLR 1182 states that the fact that whether
any statement made by an individual can b Watson v. Foxman (1995)
1 Watson v. Foxman (1995)
2 Fox v Percy (2003) 2014 CLR 118

LAW OF CONTRACT2
e regarded as the part of a particular contract shall be based on the current resources of the case,
the quantitatively recognized facts of the case and the seeming reason of the case.
Application
Applying the rule as provided in Watson v. Foxman (1995), it can be mentioned that
every statement made by any individual cannot be comprehended all the time. Hence, a part of
the statements uttered by Jimmy were made in an unpremeditated manner and only that part
cannot be considered to be the part of the contract of sale. However, the rest of the part can be
included.
Applying the rule of Fox v Percy (2003) 2014 CLR 118, it may be said that whether a
statement made by an individual shall be considered to be part of a contract should be based on
the circumstances of each particular case. Based on the circumstances of this case, it can be
presumed that although Jimmy did not have any legal intentions when he uttered the statements
to Joanna as he was only trying to help her choose the best mowing machine, however the
statement represented the machine and hence can be included in the contract.
Conclusion
In conclusion it can be said that the statements made by Jimmy can be partly presumed to
be part of the contract of sale.