i) Term of Contract
In the course of negotiations that should lead to the formation of a contract, the parties to the contract may make a number of statements. These statements may or may not form part of the contract. If a statement becomes a core part of a contract, it is a term of the contract. A term of a contract then creates a legal obligation for which it entitles the innocent party to sue for damages for breach of contract. (2 marks)

ii) Rescission
Rescission of a contract is an equitable remedy that allows the parties to a voidable contract to treat it as if it had never been made and to recover from one another any money or property that had changed hands before the defect came to light. It is a standard remedy in case of breach of a condition. The remedy requires that the person has acted equitably himself. It will not be available if the person claiming it delays in acting on his right and a third party’s rights have arisen, the person claiming (third party) has affirmed the contract and property being reclaimed has passed to a third party.

(2 marks)