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This issue can be resolved by an examination of the intention of the parties to the contract. Through the landmark case of Heilbut, Symons &. Co v Buckleton,1 the House of Lords had established that whether or not a statement is a term of the contract shall be decided by employing the intention of the parties as the overall guide. This intention shall be ascertained under the four tests of timing, importance of the statement, reduction of terms to writing, and possession of special knowledge or skills. First, under the test of timing, the use of cream Welsh slate can be considered as a term of the contract if the reverend’s statement was made within a short interval of time from the writing of the contract. Otherwise, if there was a long lapse of time, then it is a mere representation and not part of the terms of the contract.2 The second test that could be used to determine the true intention of the parties is the importance of the statement. If the court determines that the statement was the principal reason for the aggrieved party to enter into the contract in question, then it is a term. Otherwise, if it was not the essential cause for the conclusion of the contract, then it is a mere representation. …
It is established that when a contract is reduced into writing, it contains all the stipulations agreed by the parties and all those not mentioned on paper are deemed not part of the contract. However this rule admits of some exceptions where statements were considered as part of the terms of the contract although they were omitted in the written contract.4 The final test for the intentions of the parties is the possession of special knowledge or skills. If the person who made the disputed statement has special knowledge or skills thus placing him in a better position to know the truth or validity of his claim than the other party, then the statement is a term of the contract. For example, between a veteran car dealer and a first-time car owner, the statements made by the former about the conditions of the car shall be considered as part of the terms of the contract.5 If after applying the foregoing tests it shall be found that the statement about the use of cream Welsh slate is a term of contract, it shall then be determined whether the term is one of condition or warranty. A condition is a key term of the contract which is important to its very existence while a warranty is a minor term which does not affect the main purpose for the contract. In addition, a breach of condition entitles the injured party to repudiate the contract and to claim damages6 while a breach of warranty only entitles the injured party to a claim for damages without the remedy of repudiation.7 Moreover, despite the breach of condition, the aggrieved party has the option to simply demand for damages and just proceed with the execution of the contract.
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