What are pre-contractual statements in contract law?
This Practice Note considers statements (whether oral or written) made by one party to another prior to entering into a formal contract and gives an overview of the circumstances in which that statement could be said to form part of the contract or give rise to other remedies.
What are pre-contractual negotiations?
Pre-contractual negotiations—the process of reaching a written contract.
Is evidence of prior negotiation admissible in aid of construction of a contract?
The general rule is that any pre-contractual discussions, made during the negotiation of the contract, are inadmissible as evidence to assist in determining the construction of a contract (Prenn v Simmonds [1971] 1 WLR 1381).
What is the significance of pre-contractual statements?
Pre-contractual statements can be a “term” of the contract or a representation and if it comes to litigation it will be important to determine this as it will affect the appropriate cause of action and the remedies that are available.
What is a pre-contractual statement that is not a term?
representation. pre-contractual statement that is not a term but which has induced a contract.
Which of the following describes a pre-contractual statement which does not form a term of a contract but induces the contract?
A representation is a statement which induces the contract but does not form part of it. If the representation was untrue at the time it was made, the injured party will be able to bring an action for misrepresentation.
Are pre-contractual documents binding?
Document Content: There is no rule that a Pre-Contract Document’s title prevents it from being a legally enforceable contract. If all elements are present the Pre-Contract Document may be considered legally binding despite its title suggesting otherwise.
When must a consumer be issued with pre-contract information?
The pre-contract information must be provided in “good time” before the customer becomes bound by the agreement.
Are pre contractual documents binding?
What are pre contractual representations?
In the context of pre-contractual negotiations, for a representation to lead a person into error it must act as an inducement. That is, it must be the thing that prompts the parties to enter into contractual relations. Representations which merely cause confusion cannot be categorised as misleading or deceptive.
Can Pre-contract minutes form a binding?
Pre-contract documents can, however, be used to set out some binding terms, confidentiality being a prime example. If all elements are not present, the pre-contract documents may well be simply an agreement to agree, and such an agreement will not be legally binding.
What is a pre-contractual statement that induces the making of a contract?