When it comes to legal contracts, there are a few terms that can sometimes be confusing. Two of those terms are « representation » and « term. » While they may sound similar, they actually mean very different things within the context of a contract.

A representation is a statement made by one party to the contract that is meant to be relied upon by the other party. In other words, it`s a statement about a fact or circumstance that is intended to influence the decision of the other party to enter into the contract. For example, if you were selling a used car, you might make a representation that the car has never been in an accident. If the buyer relies on that statement and later discovers that the car was, in fact, in an accident, they may be able to take legal action against you for misrepresentation.

On the other hand, a term is a specific provision or clause within the contract that sets out the obligations or rights of the parties. These terms can include things like payment schedules, delivery dates, and performance guarantees. Unlike representations, terms are not meant to be relied upon as statements of fact but are instead binding obligations that must be fulfilled by the parties.

To put it simply, a representation is a statement about something that may or may not be true, while a term is a specific requirement that must be met by the parties to the contract. While both are important components of a valid contract, it`s important to understand the difference between the two to avoid any confusion or legal issues down the line.

In conclusion, representations and terms are two essential parts of any legal contract, though they fulfill very different roles. Representations are statements that are intended to influence the other party`s decision to enter into the contract, while terms are provisions that outline specific obligations or requirements that must be met. As always when dealing with legal issues, it`s important to understand the language and terminology of any contract you enter into to ensure that you are meeting your obligations and avoiding any legal issues.