6. The Contract (Part Three): Terms. Introduction. Once a contract has been formed it then becomes necessary to identify the terms of the contract. The terms of the contract impose the obligations on each party.
(Part Three): Terms
The courts attempt to give effect to the parties intentions, and they do this using the objective test. The courts ask :
What would a reasonable person believe to be the parties intentions in regard to the contractual force of the statement.
The major reason for the distinction is the type of remedy that is available. For breach of a term damages is available as a remedy. With a breach of a representation no remedy is available unless it was made fraudulently/negligently.
The courts look at the contract as a whole and ask whether the statement is of such importance to the innocent party, that the innocent party would not have entered into the contract unless that promise was made: Tramways Advertising v Luna Park
Henry Kendall & Sons v William Lillico
Curtis v Chemical Cleaning Co
Elder Smith Goldsbrough Mort Ltd v McBride
White v John Warwick & Co Ltd  1 WLR 1285
Darlington Futures Ltd v Delco Australia P/L
Sydney City Council v West