The court determines whether a representation is a term or mere representation by assessing the intention of the parties and the context in which the statement was made. Key factors include the importance of the statement to the contract, whether it was made in a formal setting, and whether the parties relied on it during negotiations. If a representation is deemed a term, it becomes enforceable as part of the contract; if merely a representation, it may not carry the same legal weight. The court may also consider whether the statement was reduced to writing in the contract.
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