Implied terms

Question 1

Implied terms

Answer 1

1. By the courts.
2. Custom.
3. Statute: i.e. sale of goods act 1979 and consumer act 2005.

Question 2

The Moorcock (1889)

Answer 2

Implied terms as a matter of fact: Defendants owned a wharf and jetty on the River Thames. Claimants owned a steamship, the Moorcock which got damaged after settled on the ground when the river was at low tide. Defendants were liable for the damages of the ship, it was implied that the defendant would take reasonable steps to find out the better space for the ship.

Question 3

Shirlaw v Southern Foundries (1939)

Answer 3

Officious bystander test. If a bystander thinks the term should have been expressly included in the contract and if the parties say it’s obviously included, then the term would be implied into the contract.

Question 4

Liverpool City Council v Irwin (1977)

Answer 4

Implied terms as a matter of law: Council did not maintain a block of flats. Held: It was an implied term that the council should have kept the communal facility in reasonable repair and usability.

Question 5

Hutton v Warren (1836)

Answer 5

Terms implied on the grounds that they are customs. Landlord served notice to a tenant in a farm. Tenant claimed payment of the crops. Leasehold did not include such a term. HELD: Agricultural custom so it was implied to the contract.

Question 6

Types of terms

Answer 6

1. Conditions.
2. Warranty.
3. Innominate or indeterminate

Question 7

Bettiny v Gye (1876)

Answer 7

Opera singer got ill and did not show up in some part of the show. HELD: Breach of warranty as it did not deprived the whole benefit of the contract. Contract could not be terminated.

Question 8

Poussard v Spiers (1876)

Answer 8

Opera singer got ill and did not show up from the beginning of the season. HELD: Breach of condition as it deprived the whole benefit of the contract.

Question 9

Hong Kong Fir Shipping v. Kawasaki (1962)

Answer 9

Contract could not be termined.