... contract negotiations will be classified by the courts as either a representation or a term; a significance of classification being the consequences on breach. A term is a promise or undertaking which forms part of the contract, whereas a representation is a statement which induces one party to make the contract but does not become part of the contract itself. If a pre-contractual statement is found to be a term of the contract, which is subsequently proved to be untrue, this will give rise to an action for breach of contract. If however, the statement is classified as a representation and that representation proves false, the remedy will lie in an action for misrepresentation. Whether a pre-contractual statement is a term relies primarily on whether there is an intention on behalf of the parties for it to be considered as such, and the test to determine contractual intention is an objective ...

See this essay or coursework document in full right now