Contract Terms - Implied Terms

Question 1

Terms implied by common law - business efficacy

Answer 1

If the parties have traded previously on certain terms but in the latest contract those terms have not been expressly agreed then the courts are prepared to say that those terms are implied. Such terms can also be implied where the terms are necessary to give business efficacy to the contract (ie to make it work) (The Moorcock).

Question 2

Terms implied by common law - prior dealings

Answer 2

The prior conduct of the parties may indicate terms be implied (Hillas v Acros).

Question 3

Terms implied by common law - custom

Answer 3

Sometimes the courts will recognise that in a particular area or trade, things are done in a certain way. The courts are prepared to accept that these customs can be implied into the contract (Hutton v Warren).

Question 4

s.9 Consumer Rights Act

Answer 4

Satisfactory quality (sale of goods)

Question 5

Satisfactory Quality Factors

Answer 5

Fitness for purpose for which goods of that kind are commonly supplied

Appearance and finish

Freedom from minor defects

Safety

Durability

Question 6

s.10 Consumer Rights Act

Answer 6

Fitness for purpose (sale of goods)

Question 7

s.11 Consumer Rights Act

Answer 7

Under s11(1) CRA when goods are sold by description there is an implied term that they will match the description.

Under s11(2) CRA when goods are sold by sample there is an implied term that the goods must match the sample (and the description if given).

Question 8

s.49 Consumer Rights Act

Answer 8

Reasonable care and skill - Implied term that the trader will perform the service with reasonable care and skill (Thake v Maurice). (provision of services)

Question 9

s.51 Consumer Rights Act

Answer 9

Reasonable price (provision of services)

Question 10

s.52 Consumer Rights Act

Answer 10

Performance within a reasonable period of time (provision of services)

Question 11

s.20 Consumer Rights Act

Answer 11

Short term right to reject (30 days) (sale of goods)

Question 12

s.23 Consumer Rights Act

Answer 12

Right to repair or price reduction (sale of goods)

Question 13

s.24 Consumer Rights Act

Answer 13

Right to price reduction or final right to reject (sale of goods)

Question 14

s.31 Consumer Rights Act

Answer 14

Liability cannot be excluded

Question 15

s.55 Consumer Rights Act

Answer 15

Right to require repeat performance (provision of services)

Question 16

s.56 Consumer Rights Act

Answer 16

Right to a price reduction (provision of services)