Analysing the details
1. In the recent past we have seen various situations where there is utter confusion regarding the understanding of a contract. There are wide range of difficult or complex words which play very important role in the contract and most of the times these words are misunderstood as there is little knowledge about the legality of the terms. Thus in this project we are going to select few words which decide the fate of the contract and then provide there literal meaning so that it can be easily understood by common people. The contract which is being discussed id between a vendor and a purchaser of goods. There are few phrases which are very difficult to understand and there might be cases their meanings are not understood by the common people. On this contract we shall highlight three such words or phrases. They have been listed below.

1. Beneficial owner
2. Effective date
3. Representations
2. Meaning of the terms
Beneficial owner, these words often tend to confuse, because of their complex meanings. Beneficial owner means the person who can enjoy the benefits of the goods i.e. the goods are his property he has total right over them. They are the owners of the goods legally and have the right to keep it or sell the goods to any third person
Effective date, this phrase in this contract means the day on which the contract is going to be executed means when the signature of both the parties have been taken and it is legally initiated. The clauses of the contract would be applicable on he parties from that day onwards Turner, C (2004).
Representations, means in this contract any further details or queries from both the parties and what are the things they want to add or remove from the contract it can be done before the effective dates i.e. the modifications in the contract can be done till that time. Representations are sent by either party stating their requirements
There has been an explanation of these words which may cause problems to the parties in understanding. As small clauses and words can change the total picture of the contract
Treatment of terms in the contract
Wether treated as term
Six words have been chosen from this contract and we will find out wether they are treated as a term in the contract or not the words have been mentioned below
1. Agreeable to selling
2. Purchase price equal to market price
3. The vendor is legal and beneficial owner
4. Representations and warrants set therein
5. Agreeable in jointly electing
6. Time prescribed by the section
Issue: Agreeable to selling should be treated as a term in this contract or wether it cannot be treated as a term
Rule: In this part we are going to apply the concept of innominate term which means that if the contract is not having this clause the contract cannot be made it is a very important clause. It is one of the most needed clauses in the present contract.
Application: In this case we can apply this term as both the parties are ready to go in the contract and it is because of their interest that this contract is being initiated it is totally different from contracts which are related to copyrights
Conclusion: Thus we can ascertain that this is a valid term in the contract and should be treated as one because it is very important for the formation of the contract
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Issue: Purchase price equal to market price should be treated as a term in this contract or wether it cannot be treated as a term
Rule: The rule of innominate term is also applicable here as because if this term is not followed or removed the other party has the right to forfeit the contract as it is going t effect their interest very heavily
Application: As the vendor wants the price to be equal to that of the current market price on the day on which the contract was made, it is his interest and if it is no accepted it would affect his earning from the sole thus he can cal of the transaction
Conclusion: we can finally conclude by saying it is a term in the present contract
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Issue: The vendor is legal and beneficial owner should be treated as a term in this contract or wether it cannot be treated as a term
Rule: In this case we will apply the rule of condition precedent term will be applicable because if the contract is initiated then only purchaser will become the owner and if it is not then he will not become the owner of the property
Application: In this contract it is mentioned that the purchaser will become the owner of the goods once the contract is signed by both the parties. Thus it is condition precedent term.
Conclusion: Thus we can ascertain that this is a valid term in the contract and should be treated as one because it is very important for the formation of the contract
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Issue Representations and warrants set therein should be treated as a term in this contract or wether it cannot be treated as a term
Rule: We are going to use the rule of innocent term as because it is important that the representations and warrants should be accepted by both parties or the interest of one can be harmed.
Application: In the present contract the vendor and purchaser will make representations and give warranties on various things in the sale contract thus it is important to consider these from both the sides.
Conclusion: we can finally conclude by saying it is a term in the present contract
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Issue: Agreeable in jointly electing should be treated as a term in this contract or wether it cannot be treated as a term
Rule: Here the rule of condition subsequent term is applicable as because if this term is breached the contract can be cancelled by the party who’s interest is being harmed.
Application: In this case the purchaser and the seller both have agreed to jointly make the terms and conditions Pendleton, W & Vickery (2005). And if it is not done like that there is a high change that the contract might be forfeited
Conclusion: Thus we can ascertain that this is a valid term in the contract and should be treated as one because it is very important for the formation of the contract
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Issue: Time prescribed by the section should be treated as a term in this contract or wether it cannot be treated as a term
Rule: Here we apply the rule of implied term, few of the clauses are implied terms in the contracts and the time limit to enter the transaction is also one of them Carvan, J et al (2004).
Application: In this contract everything should be done within a certain time limit and there is nothing mentioned about the penalty or effect if it is not done with in that time.
Conclusion: we can finally conclude by saying it is a term in the present contract
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Analysing wether they are warranty or condition
Issue: wether to consider Agreeable to selling as a warranty or it should be treated as a condition
Rule: Here the rule of test of object is applicable since we should know how much that term is to the contract and it finally differentiates warranty from condition.
Application: In this contract this clause is most important hence it should be used as a condition in this case.
Conclusion: Therefore we might conclude it is a warrant in this present scenario
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Issue: wether to consider Purchase price equal to market price as a warranty or it should be treated as a condition
Rule: In this clause we can see that the rule of test of object is applicable and this is very important term if is breached the contract might be cancelled and damages can be claimed
Application: The vendor might forfeit if the purchaser doesn’t pay him as much as he as mentioned in the contract.
Conclusion: After reviewing the details it can be said that it is a condition
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Issue: wether to consider the vendor is legal and beneficial owner as a warranty or it should be treated as a condition
Rule: We can say that in the contract the rule of test of object is applicable and we can see that if this doe not take place the contract may be called off.
Application: As in this case if vendor is not the real owner the contract will be void and thus it should be a condition
Conclusion: Therefore we might conclude it is a condition in this present scenario
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Issue: wether to consider Representations and warrants set therein as a warranty or it should be treated as a condition
Rule: In this present scenario the rule of test of object is applicable, of the clause is very important to the contract oit should be there this is not the case here if it is breached the contract can be modified but cancelling it is not the right remedy.
Application: Thus in this case this term is not very important thus it cannot be called a condition.
Conclusion: After reviewing the details it can be said that it is a warrant
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Issue: wether to consider Agreeable in jointly electing as a warranty or it should be treated as a condition
Rule: We can see in the particular contract the rule of test of object is applicable thus if this term is breached the contract may not take place
Application: They would jointly take the decisions if this clause is breached it might result in cancelling the contract but no damages would be paid hence not a condition.
Conclusion: Therefore we might conclude it is a warrant in this present scenario
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Issue: wether to consider Time prescribed by the section as a warranty or it should be treated as a condition
Rule: here the rule of test of object is applicable and if one party does not do something within the time limit the other can claim damages as well as rescind the contract
Application: Time in this contract is a very important clause. If any of the parties beaches this clause they can be charged for damages and the contract might be cancelled.
Conclusion: After reviewing the details it can be said that it is a condition.
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