Finding Out Maria 's Contractual Position With Ms Potts And Gastro Kitchens Ltd
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The issue here is to find out Maria’s contractual position with Ms Potts and Gastro Kitchens Ltd (GKL) due to the lack of promise through the oral statements in the dealings and the standard written contract regarding Maria’s new kitchen. To be able to do this, it needs to be established whether there was a valid contract between the parties and also if the terms agreed upon would be legally binding.
A contract is composed of a number of terms that defines the parties’ rights and liabilities. It is either made verbally, in writing or both. Express terms are promises that are expressed between the parties, which becomes part of the contract itself. On the other hand, if parties have entered into discussions either orally or in writing, it does not mean that any conclusions reached from the discussions are automatically terms of a contract. Distinctions need to be made between statements that are merely representations and those that amount to terms in a contract. In Maria’s case, she was presented with oral and written statements, the latter taking precedence. As Maria had relied on the oral statements however, consideration must be taken as to what was agreed and whether or not it would be classified as terms.
A representation is binding if it is incorporated as an express term of the contract. Incorporation arises with regards to written contracts in standard form and contracts that have not been signed. The courts have adopted an objective test to determine whether or