CONTRACT LAW L4 - Terms - IMPLIED TERMS Flashcards
Is an implied term binding to the same extent as an express term? (1)
Yes
Why is a term implied in fact? (1)
To give effect to the presumed but unexpressed intentions of the parties.
Why is a term implied in law? (1)
The court or statute require this regardless of the intention of the parties.
What will the courts do to discover the unexpressed intention of the parties? (2)
They may take notice of trade customs and the need to give business efficacy to a contract.
What is the implication based on where a term is implied on the grounds of a custom? (1)
That it was the intention of the parties to be bound by well-known customs of a particular trade BRITISH CRANE HIRE V IPSWICH PLANT 1975.
What happens where parties have made an unambiguous express provision in their contract? (1)
The court will not imply a term to the contrary.
What does the case of MCCUTCHEON V MACBRAYNE 1964 show in regards to implied terms? (2)
A term may be implied into an agreement on basis that the parties have dealt with each other on many occasions over a long period of time. A term is only implied where the dealings of the parties have followed a consistent and regular pattern.
Which case demonstrates that a term may be implied to give business efficacy to a contract? (1)
THE MOORCOCK 1889.
Will a term be implied on the grounds that such an implication will transform the agreement into a business-like arrangement? (1)
No.
Why would term be implied by the courts at common law? (2)
To give effect to legal duties which arise as a matter of policy out of certain types of contractual relationships e.g. context of landlord and tenant terms implied by law - LIVERPOOL CITY COUNCIL V IRWIN 1976.
Which statutes indicate that stipulated terms will be implied into contracts? (3)
Sale of Goods Act 1979.
Consumer Rights Act 2015.
Supply of Goods and Service Act 1982.
