Entire Agreement Clauses in Construction Contracts - Implied Terms and Misrepresentations

 

Cmtirc agrccocmt djauscs im dfmstrudtifm dfmtradts - Iopjich tcros amh oisrcprcscmtatifms

Im `rice - Cmtirc agrccocmt djausc mft imtcmhch as am cxdjusifmary prfvisifm

Xbc ratifmajc umhcrjyimg cmtirc agrccocmt djauscs is tf dfmsfjihatc tbc `argaim fe tbc partics. It is mft tf adt as am cxdjusifmary prfvisifm darvimg fut tbimgs sudb as oisrcprcscmtatifms amh iopjich tcros. ^urpfsc fe cmtirc agrccocmt djausc

"Cmtirc agrccocmt" djauscs arc imvaria`jy imdjuhch im dfmstrudtifm dfmtradts. Xbcir purpfsc, dfjfureujjy bigbjigbtch im a 0>>> Cmgjisb hcdisifm (Immtrcprcmcur  ^u` Df v Cast Drfwm Jioitch \0>>>_ 0 Jjfyh's Pcp 511 at 518), is tf prcvcmt a party "tbrcsbimg tbc umhcrgrfwtb amh eimhimg im tbc dfursc fe mcgftiatifms sfoc (dbamdc) rcoarl fr statcocmt (fetcm jfmg efrgfttcm fr hieeidujt tf rcdajj fr cxpjaim) fm wbidb tf efumh a djaio tf tbc cxistcmdc fe a dfjjatcraj warramty". Cmtirc agrccocmt djauscs arc imtcmhch tf "dfmsfjihatc" tbc fvcrajj `argaim imtf fmc hfduocmt. Xbcy rcofvc tbc mcch tf prfvc am imtcmtifm tf ocrgc tbc tramsadtifm imtf hfduocmtary efro. ^bijfsfpbidajjy, tbc ceecdtivcmcss fe sudb djauscs hcrivcs erfo tbc agrccocmt fe tbc partics. Xbc csscmdc fe tbc agrccocmt is mft tf prfeecr am cxprcss dfmtradtuaj tcro mft sct fut im tbc agrccocmt. Xf hf sf wfujh `c a `rcadb fe dfmtradt. Tdfpc fe cmtirc agrccocmt djauscs

Hctcroimimg tbc sdfpc fe am cmtirc agrccocmt djausc is hcpcmhcmt upfm tbc imtcmtifm fe tbc partics imtcrprctch im tbc jigbt fe tbc dfmtradt. Im a 0>11 Cmgjisb hcdisifm ( ARA  ARA Tumjiec Tcrvidcs ^jd v Daop`cjj Oarti Oartim m Jth & Frs), tbat issuc raisch imtcrcstimg qucstifms as tf wbctbcr sudb a djausc cxtcmhch tf oisrcprcscmtatifms oisrcprcscmtatif ms amh iopjich tcros. ARA dfoocmdch am adtifm agaimst efur fe its rcprcscmtativcs, ajj fe wbfo bah cmtcrch imtf stamharh efro dfmtradts suppjich `y ARA. ARA ajjcgch tbat tbc dfmtradts bah `ccm tcroimatch amh tbat, as a rcsujt, ofmics wcrc fwimg tf ARA `y cadb fe tbc hcecmhamts. Xbc hcecmhamts' hcecmdcs rcjich, aofmgst ftbcr

 

tbimgs, fm erauhujcmt oisrcprcscmtatifms imhudimg tbco tf cmtcr imtf tbc agrccocmt amh fm ajjcgch `rcadb fe dcrtaim iopjich tcros. Djausc 08 fe tbc agrccocmts prfvihch as efjjfws; "(i) Xbis Agrccocmt amh tbc Tdbchujcs amh hfduocmts rcecrrch tf bcrcim dfmstitutc tbc cmtirc agrccocmt amh umhcrstamhimg `ctwccm yfu amh us im rcjatifm tf tbc su`kcdt oattcr tbcrcfe. (ii) Witbfut prckuhidc tf amy variatifm as prfvihch im djausc 1.1, (iii) tbis Agrccocmt sbajj supcrschc amy prifr prfoiscs, agrccocmts, rcprcscmtatifms, umhcrtalimgs fr iopjidatifms wbctbcr oahc frajjy fr im writimg `ctwccm yfu amh us rcjatimg tf tbc su`kcdt oattcr fe tbis Agrccocmt. (iv) `ut tbis wijj mft aeecdt amy f`jigatifms im amy sudb prifr agrccocmt wbidb arc cxprcssch tf dfmtimuc aetcr tcroimatifm." Xbc rcecrcmdcs tf parts (i) tf (iv) im tbat quftc bavc `ccm imscrtch tf ijjustratc tbc way im wbidb Jfrh Kustidc Pix amajysch tbc djausc. Cxdjusifm fe jia`ijity efr oisrcprcscmtatifm oust `c djcarjy statch Aetcr mftimg tbat parts (i), (ii) amh (iv) wcrc ajj dfmdcrmch witb ihcmtieyimg tbc partics' dfmtradtuaj arramgcocmts, tbc dfurt turmch its attcmtifm tf ARA's su`oissifm tbat part (iii) cxdjuhch jia`ijity efr oisrcprcscmtatifm oisrcprcscmtatifm.. Xbat arguocmt rcdcivch sbfrt sbriet, witb bis Bfmfur oalimg tbc efjjfwimg pfimtch dfoocmts;

"I wfujh `c imdjimch, su`kcdt tf autbfrity, tf rcgarh djausc 08 as `cimg dfmdcrmch fmjy witb oattcrs fe agrccocmt, amh mft witb oisrcprcscmtatifm at ajj. Xbc csscmdc fe agrccocmt is tbat it is dfmdcrmch witb oattcrs wbidb tbc partics bavc agrcch. Xbc csscmdc fe oisrcprcscmtatifm, bfwcvcr, is tbat it is mft dfmdcrmch witb wbat tbc partics bavc agrcch, `ut ratbcr witb imadduratc statcocmts (immfdcmtjy, mcgjigcmtjy fr erauhujcmtjy imadduratc statcocmts) wbidb bavc `ccm ` ccm oahc `y fmc party tf tbc ftbcr, bavc `ccm rcjich fm `y tbc rcprcscmtcc im cmtcrimg imtf tbcir agrccocmt, amh wbidb oay givc tbc rcprcscmtcc rigbts tf rcsdimh tbat agrccocmt amh/fr djaio tfrtifus fr quasi-tfrtifus quas i-tfrtifus haoagcs `y rcasfm fe jfss arisimg fut fe cmtcrimg imtf tbc agrccocmt. Im a djausc tbcrcefrc im wbidb tbrcc parts par ts arc pjaimjy dfmdcrmch fmjy witb agrccocmt, imdjuhimg twf ftbcr parts fe tbc scje-saoc scmtcmdc, amh im wbidb ajj tbc ftbcr si`jimg wfrhs im tbc dritidaj part (iii) arc wfrhs fe agrccocmt, amh wbcrc tbc dritidaj simgjc wfrh "rcprcscmtatifms" (mft oisrcprcscmtatifms) is jilcjy im dfmtcxt tf rcecr tf rcprcscmtatifms wbidb oigbt `c arguch, `ut efr tbc djausc, tf bavc `cdfoc tcros fe tbc agrccocmt, amh wbcrc tbc

 

ftbcr iopfrtamt wfrh "supcrschc" is csscmtiajjy a wfrh fe agrccocmt ratbcr tbam cxdjusifm, I wfujh tbus prfvisifmajjy dfmdjuhc tbat oisrcprcscmtatifm amh tbc cxdjusifm fe oisrcprcscmtatifm fr jia`ijity efr it arc siopjy mft tbc `usimcss fe tbc djausc at ajj." Xbc dfurt's imdjimatifm was dfmeiroch `y a rcvicw fe rcjcvamt kurispruhcmdc, wbidb rcsujtch im Jfrh Kustidc Pix ihcmtieyimg dcrtaim tbcocs wbidb hcscrvch rcdfgmitifm; "Aofmg tbco is tbat tbc cxdjusifm fe jia`ijity efr oisrcprcscmtati oisrcprcscmtatifm fm bas tf `c djcarjy statch. It dam `c hfmc `y djauscs wbidb statc tbc partics' agrccocmt tbat tbcrc bavc `ccm mf rcprcscmtatifms oahc< fr tbat tbcrc bas `ccm mf rcjiamdc fm amy rcprcscmtatifm< fr `y am cxprcss cxdjusifm fe jia`ijity efr oisrcprcscmtatifm. Bfwcvcr, savc im sudb dfmtcxts, amh partidujarjy wbcrc tbc wfrh "rcprcscmtatifms" talcs its pjadc ajfmgsihc ftbcr wfrhs cxprcssivc fe dfmtradtuaj f`jigatifm, tajl fe tbc partics' dfmtradt supcrschimg sudb prifr agrccocmt wijj mft `y itscje a`sfjvc a party fe oisrcprcscmtatifm wbcrc its imgrchicmts dam `c prfvch." Fm tbis `asis, djausc 08 was efumh mft tf cxdjuhc jia`ijity efr oisrcprcscmtatifms fe amy limh. Tfoc iopjich tcros mft cxdjuhch `y cmtirc agrccocmt djauscs

Imsfear as tbc hcecmhamts sfugbt tf rcjy fm iopjich tcros, tbcy arguch tbat tbcy wcrc mcdcssary tf givc `usimcss ceeidady tf tbc agrccocmts. Xbc dfurt rcgarhch sudb tcros as "imtrimsid" tf tbc agrccocmts amh mft cxdjuhch cxd juhch `y djausc 08. Tudb tcros ecjj witbim part (i) fe tbc djausc amh wcrc mft "prifr" tf tbc agrccocmt. Fm tbc ftbcr bamh, tcros wbidb oigbt `c iopjich as a rcsujt fe oattcrs "cxtrimsid" tf tbc agrccocmts wfujh `c cxdjuhch `y djausc 08. Xbis apprfadb is dfmsistcmt witb Austrajiam autbfrity. Efr cxaopjc, im a 1999 Uidtfriam Dfurt fe Appcaj hcdisifm, a djausc wbidb statch tbat tbc dfmtradt was tbc "sfjc rcpfsitfry fe tbc agrccocmt" amh tbat tbcrc wcrc "mf tcros . . . wbidb bavc `ccm rcjich upfm `y tbc ^urdbascr im cmtcrimg imtf tbis dfmtradt ftbcr tbam tbfsc imdjuhch im tbis dfmtradt" was bcjh mft tf cxdjuhc cx djuhc tbc iopjidatifm fe a tcro wbidb ftbcrwisc fugbt tf `c iopjich. Imtcrcstimgjy, tbc dfurt im ARA adlmfwjchgch tbc pfssi`ijity tbat djausc 08 dfujh bavc cxprcssjy cxdjuhch tcros wbidb ftbcrwisc wfujh bavc `ccm "imtrimsid". It wfujh mft mfroajjy `c pruhcmt, bfwcvcr, tf ahfpt tbis dfursc. Xf hf sf oay ummcdcssarijy rcstridt tbc dfoocrdiajity fe tbc dfmtradt.

 

Eurtbcrofrc, it wfujh rcquirc tbc partics tf oalc a jargcjy umimefroch cjcdtifm at tbc hatc fe tbc dfmtradt rcgarhimg risl/`cmceit im dfmmcdtifm witb tbc tcro wbidb oay arisc im umamtidipatch dirduostamdcs. Dbajjcmgimg cmtirc agrccocmt djauscs

Xbc ARA hcdisifm ijjustratcs tbc pfimt tbat cmtirc agrccocmt djauscs oay wcjj mft `c dfmdjusivc. Im ahhitifm tf tbc pfssi`ijity fe dbajjcmgimg tbc imtcgrativc ceecdt fe sudb djauscs `y ajjcgimg oisrcprcscmtati oisrcprcscmtatifm, fm, tbcrc oay `c ftbcr rcasfms wby sudb djauscs oay `c imvajih. Efr imstamdc, tbcy oay sccl tf cxdjuhc tcros iopjich `y statutc, rcsujtimg im tbc imvajihity fe tbc djausc (at jcast tf tbat cxtcmt). Tioijarjy, tbat rcsujt dfujh ejfw ie tbc djausc was imtcmhch tf cxdjuhc jia`ijity efr oisjcahimg fr hcdcptivc dfmhudt witbim tbc ocamimg fe scdtifm 12 fe sdbchujc 0 tf tbc Dfopctitifm & Dfmsuocr Adt  0>1>  0>1> (efrocrjy scdtifm 30 fe tbc Xrahc ^radtidcs Adt  1978).  1978). Dfoocrdiaj purpfsc amh pradtidaj iopjidatifms fe cmtirc agrccocmt djauscs

Xbc ratifmajc umhcrjyimg cmtirc agrccocmt djauscs is tf dfmsfjihatc tbc `argaim fe tbc partics. It is mft tf adt as am cxdjusifmary prfvisifm darvimg fut tbimgs sudb as oisrcprcscmtatifms amh iopjich tcros. Dfmdcptuajjy, tbfsc oattcrs sbfujh `c hcajt witb im scparatc djauscs. Erfo a pradtidaj pcrspcdtivc, tbis apprfadb wfujh gf a jfmg way tf prcscrvimg tbc imtcgrity fe tbc cmtirc agrccocmt djausc. d jausc. Cmtirc agrccocmt djauscs arc vajua`jc im dfoocrdiaj dfmtradts. Xbc dfmdcpt fe "cmtirc agrccocmt" is mft, bfwcvcr, a tcro fe art. ar t. Xbc ocamimg fe sudb djauscs is, as witb ajj ftbcr tcros, a oattcr fe imtcrprctatifm. Im hraetimg sudb djauscs; 

 

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tbcir tcros sbfujh `c dfmeimch tf tbcir eumhaocmtaj dfmdcptuaj purpfsc tbc jamguagc fe cxdjusifm sbfujh `c avfihch tbfsc tbimgs wbidb tbc partics imtcmh tf cxdjuhc erfo tbcir risl prfeijc (cg jia`ijity efr oisrcprcscmtatifms) sbfujh `c hcajt witb im scparatc dfmtradtuaj prfvisifms.

Xbis is dfoocmtary pu`jisbch `y Dfjim @iggcrs & ^aisjcy efr gcmcraj imefroatifm purpfscs fmjy. Xbis sbfujh mft `c rcjich fm as spcdieid ahvidc. Yfu sbfujh sccl yfur fwm jcgaj amh ftbcr ahvidc efr amy qucstifm, fr efr amy spcdieid situatif situatifm m fr prfpfsaj, `cefrc oalimg amy eimaj hcdisifm. Xbc dfmtcmt ajsf is su`kcdt tf dbamgc. A pcrsfm jistch oay mft `c ahoittch as a jawycr im ajj Ttatcs amh Xcrritfrics. © Dfjim @iggcrs & ^aisjcy, Austrajia 0>01.