Implied Terms Flashcards
British Crane Hire Corp v Ipswich Plant Hire
Terms can be implied by custom, meaning terms that are usually in a contract are still there even if not specified
Marks and Spencer v Paribas
Terms can be implied by fact, where both parties would have intended the terms to be there
The Moorcock
The business efficacy test, where the contract would be pointless without having the term implied
Shirlaw v Southern Foundaries
The officious bystander test, where the parties would reply with a common ‘of course!’ if the term was suggested by an officious bystander
Irwin
If the parties would not have intended the term, they can be implied by law where the court believes that term should be in the contract and this will then apply to future contracts of the same kind
Consumer Rights Act 2015
Applies to contracts between traders and consumers
S2 CRA 2015
A consumer is anyone acting wholly or mainly outside of purposes relating to their business
A trader is anyone acting for purposes relating to their business
S9 CRA 2015
Goods must be of satisfactory quality, meaning the quality a reasonable man would expect. This considers factors such as their durability, safety and being fit for purpose
S10 CRA 2015/Baldry v Marshall
Where the seller tells the buyer that the goods are for a particular purpose, there is an implied term that the goods will be fit for this particular purpose
S11 CRA 2015/Re Moore and Co
There is an implied condition that where goods are sold by description, they will correspond with that description
S20 CRA 2015
Reject the goods within 30 days and get a full refund
S23 CRA 2015
Ask for a replacement or repair within or after 30 days
S24 CRA 2015
If the goods are not/cannot be fixed, ask for a reduction in price or refund up to (and beyond) 6 months
