ABSTRACT
Introduction Whilst offer, acceptance and consideration are described as the basic requirements for a contract, terms might best be described as the ‘ingredients’ of the contract: they tell us what each party to the contract is expected to do under the contractual agreement. Terms thus identify the respective obligations of each party under the contract: they amount to contractual promises. Contractual terms are, therefore, to be distinguished from mere puffs or representations which are non-promissory in nature and do not amount to terms: a puff is an advertising statement which praises the advertised goods in such vague/boastful terms that the statement made cannot be taken seriously. A representation is a statement which induces one party to enter the contract but which does not form part of the contract, i.e. which does not amount to a contractual term. This distinction is important as only the breach of a contractual obligation/term will give rise to liability for damages for breach of contract – if a puff is broken/false, no liability is incurred for this; if a representation is broken/false, the remedies, if any, are those for misrepresentation (see Chapter 4 on Misrepresentation).
