ABSTRACT
During the course of negotiations and at the time when the contract is formed, the parties will make various statements and promises to each other. Some of these statements and promises may turn out to be incorrect, while others may not be carried into effect and the party to whom the statement or promise was addressed may wish to obtain some remedy against the person who misled him. Whether or not the aggrieved party will obtain a remedy, and the nature of any remedy, will depend upon the status which the law attributes to the statement or promise in question. Initially, it is important to distinguish between: (i) promises as to the future and statements of fact which are embodied in the contract and which are called ‘terms’; (ii) promises which are not embodied in the principal contract; and (iii) statements of fact which induce the making of the contract but which form no part of it, that is, non-contractual representations.
