Implied terms Flashcards
A term is implied in fact to give effect to the presumed but unexpressed intentions of the parties.
A term is implied in law because the courts or statute require this, regardless of the intention of the parties.
In order to discover the unexpressed intention of the parties, the courts may take notice of trade customs and the need to give ‘business efficacy’ to a contract.
Business efficacy
A term will only be implied on this ground if, without the implied term, the arrangement would be so unworkable that sensible people could not be supposed to have entered into it.
Shirlaw v Southern Foundries
Terms can be implied at common law
in certain types of relationships Liverpool City Council v Irwin
Lanlord and tenant
Terms can be implied at law as a result of statutes which indicate that they will be implied, such as
the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Consumer Rights Act 2015.
