What is meant by consideration?

A. Consideration can be defined as the price for which the promise is bought. In Currie v Misa
(1874-75) L.R. 10 Ex. 153 at 162, Lush J stated that, ‘[a] valuable consideration, in the sense of
the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or
some forbearance, detriment, loss, or responsibility, given, suffered, or undertaken by the other’.

Q. Will a false statement of opinion amount to an actionable misrepresentation?

A. As a general rule a statement of opinion is not actionable. However, if the maker of the
statement of opinion is sufficiently knowledgeable then it could amount to a statement of fact.
Two cases which are relevant here are Bisset v Wilkinson [1927] A.C. 177 which supports the
general rule, and Esso Petroleum Co Ltd v Mardon [1976] Q.B. 801 which is an exception to the
general rule.

Q. How many types of duress are there?

A. There are two types of duress, physical duress and economic duress. Physical duress relates to
threats to your person, whilst economic duress relates to threats to the economic health of your
business.

Q. What are the consequences of breaching a warranty or a condition?

A. If a warranty is breached the innocent party is entitled to claim damages. However, the
contract still must be performed. Whereas, if a condition is breached, the innocent party may
choose to repudiate the contract and this wish discharge the contract, or claim damages.

Q. What is meant by an entire agreement clause?

A. An entire agreement clause will prevent the parties from relying on any terms that are not
contained in the written contact, such as a collateral contract or claiming that the contract is
partly oral and partly written.

Q. How could the contract for the sale of goods protect a seller who wishes to sell goods to a
buyer where there is a risk that the buyer might not be able to pay for the goods?

A. The seller could include a retention of title clause in the contract with the buyer. The seller
would supply the goods to the buyer and retain legal title until the buyer has paid for the goods.
In the event that the buyer becomes insolvent the seller can recover the actual goods, rather than
having to recover the outstanding purchase price. It must be noted that the buyer is able to resell
the goods to third parties who will obtain good title to the goods. If the buyer uses the goods as
part to create manufactured goods, then the seller will lose title to the goods used in the
manufacturing process.

Q. Can liability under the terms implied by the Sale of Goods Act 1979 be excluded in a
contract?
A. This depends on the type of contract that you are looking at. According to the Unfair Contract
Terms Act 1977 liability for the implied terms cannot be excluded in consumer contracts.
However, it is possible to exclude certain implied terms where the buyer is a business, as
opposed to a consumer. The exclusion clause used to exclude liability must be reasonable.