Implied Terms

Question 1

Define

Answer 1

Terms that are put into a contract by the courts in certain circum. They are not necessarily agreed to or identified by parties

Question 2

British Crane Hire Corp v IPH

Answer 2

Implied by custom/trade (B2B)

Certain terms are usually expected in a type of contract so apply even if not specifically mentioned

Question 3

Irwin v LCC

Answer 3

Implied by fact only works if BOTH parties would have agreed to the term while making the contract

Question 4

Mark’s and Spencer v Paribas

Answer 4

Implied by common law (by fact)
To decide what parties intended - look at what reasonable person would have understood to be the intention of parties in the circum

Question 5

Implied by common law

Answer 5

Parties probably intended the situ to be covered by a term but did not specifically state it

Question 6

2 ways to prove implied by fact

Answer 6

Business efficacy test

Officious bystander test

Question 7

Moorcock

Answer 7

Shows business efficacy test

• where contract would not work/make sense without the term it will be implied
• would not intent to make pointless contract

Question 8

Shirlaw v Southern Foundries

Answer 8

Shows officious bystander test
If while parties making their bargain, an officious bystander were to suggest a term, they would testily suppress them with an ‘of course’

Question 9

Implied by law

Answer 9

Judges feel terms should be in a contract even if parties did not want them

Question 10

Implied by statute uses which act

Answer 10

Consumer Rights Act 2015

Question 11

S2 CRA 2015

Answer 11

Define consumer: a party entering a contract for purposes wholly or mainly outside of their trade/business/craft/profession
Define trader: person acting for purposes relating to their trade… etc
(Extends to third parties acting on their behalf)

Question 12

S9 CRA

Answer 12

Right to satisfactory quality

Would a reasonable person consider it satisfactory?

Question 13

S9 CRA things to consider

Answer 13

Price paid
Description (high/low qual) 
Fit for purpose (do what supposed to)
Safe 
Durable (reasonable time) 
Free from minor defects/ appearance

Question 14

S10 CRA

Answer 14

Fit for purpose
If buyer gives specific reason why they want it and seller says it is good for that particular purpose, implied term they will be fit for that purpose

Question 15

S11 CRA

Answer 15

Description

Where goods are sold by description they will correspond with description (strict liability)

Question 16

Remedies CRA - goods

S20

Answer 16

Can reject goods and claim full refund within 30 days (time may be shorter if perishable)

Question 17

Remedies CRA - goods

S23

Answer 17

Within/after 30 days consumer can ask for goods to be repaired/replaced if possible

Question 18

Remedies CRA - goods

S24

Answer 18

If cannot use 23 and replace

If defect still not fixed/impossible to fix then consumer can insist on reduction in price/refund

Question 19

S49

Answer 19

Services must be performed with reasonable care and skill

Question 20

S52

Answer 20

Services must be performed within reasonable amount of time/specified time

Question 21

Remedies CRA- services

S55

Answer 21

Buyer can get repeat performance to adequate standard

• has to be done in reasonable time
• must be without significant inconvenience to consumer
• trader must take responsibility for extra costs involved in repeating work

Question 22

Remedies CRA - services

S56

Answer 22

Reduce price appropriately based on failure (can be up to 100%)