What distinguishes a contractual term from a mere puff or representation?

• A. A contractual term is a statement forming part of the contract
• B. A puff has legal effect
• C. A representation always forms part of the contract
• D. A term is always written

Answer: (A)

A contractual term is a statement that forms part of the contract and creates binding obligations. When a statement is intended to be binding and is included in the contract, its breach gives rise to a contractual remedy. This distinguishes terms from puff or representation because puffs are exaggerated marketing statements not meant to be binding and typically have no legal effect, while a representation is a statement made to induce the contract but does not itself become part of the contractual duties unless it is incorporated as a term or amounts to a misrepresentation.

Representations can lead to remedies (like rescission or damages for misrepresentation) but they are not automatically binding as terms. And terms do not have to be written; they can be oral as well. So the statement that a contractual term is a statement forming part of the contract captures the essential distinction.