Implied Terms- Common Law

Question 1

What are the 4 things that can be used by common law to imply a term

Answer 1

• business necessity test
• officious bystander test
• previous dealing between parties
• custom

Question 2

Explain the business necessity test

Answer 2

If the term is vital to make contract work its presence can be assumed into a contract, only if contract would lack commercial/practical coherence

Question 3

What case is used for the business necessity test

Answer 3

Marks and Spencer’s v BNP

Question 4

Explain the officious bystander test

Answer 4

Term can only be implied is bystander would agree to the suggested provision

Question 5

What case is used for the officious bystander test

Answer 5

Shirlaw v southern foundries

Question 6

Explain previous dealing between parties

Answer 6

Terms can be assumed into future contracts where its been constantly relied upon in earlier contracts

Question 7

What case is used for previous dealings between parties

Answer 7

Hillas v acros

Question 8

Explain custom

Answer 8

Terms included as custom in a particular contract area can be implied into a contract