LML4805 Assignment 1
Semester 2 2024 - DUE 16
August 2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[COMPANY NAME]
[Company address]
, LML4805 Assignment 1 Semester 2 2024 - DUE 16 August 2024
Briefly explain the differences between a representation and a warranty;
between an affirmative warranty and a promissory (continuing) warranty;
between a warranty of fact and a warranty of knowledge; and between a
warranty of fact and a warranty of opinion. Give examples to illustrate the
differences for all four comparisons.
1. Representation vs. Warranty
• Representation: A representation is a statement of fact made by one
party to another before or at the time of making the contract, with the
intention to induce the other party to enter into the contract. If the
representation is false, the misled party may have grounds to rescind
the contract or claim damages.
• Warranty: A warranty is a promise that a particular statement or
condition is true and will remain true during the contract's life. If a
warranty is breached, the aggrieved party may claim damages but
cannot typically rescind the contract.
Example:
• Representation: A car seller tells the buyer that the car has never
been in an accident. If this is false, the buyer can potentially cancel
the contract.
• Warranty: The car seller guarantees that the car is in good working
condition for one year. If it breaks down during this period, the buyer
can claim damages for repairs.
Semester 2 2024 - DUE 16
August 2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[COMPANY NAME]
[Company address]
, LML4805 Assignment 1 Semester 2 2024 - DUE 16 August 2024
Briefly explain the differences between a representation and a warranty;
between an affirmative warranty and a promissory (continuing) warranty;
between a warranty of fact and a warranty of knowledge; and between a
warranty of fact and a warranty of opinion. Give examples to illustrate the
differences for all four comparisons.
1. Representation vs. Warranty
• Representation: A representation is a statement of fact made by one
party to another before or at the time of making the contract, with the
intention to induce the other party to enter into the contract. If the
representation is false, the misled party may have grounds to rescind
the contract or claim damages.
• Warranty: A warranty is a promise that a particular statement or
condition is true and will remain true during the contract's life. If a
warranty is breached, the aggrieved party may claim damages but
cannot typically rescind the contract.
Example:
• Representation: A car seller tells the buyer that the car has never
been in an accident. If this is false, the buyer can potentially cancel
the contract.
• Warranty: The car seller guarantees that the car is in good working
condition for one year. If it breaks down during this period, the buyer
can claim damages for repairs.
