Terms: Implied Terms

Question 1

The Moorcock

Answer 1

• There was implied undertaking that the ship would be at a safe mooring that would not damage the ship.

Question 2

Schawel v Reade

Answer 2

• The court decided that the defendant’s assurances were not an express term as to fitness for stud but there was an implied term in the contract that it would be fit for the stud.

Question 3

Hutton v Warren

Answer 3

• Local custom meant that at the end of an agricultural lease, a tenant farmer was entitled to an allowance for seed and labour on the land.

Question 4

Hillas v Arcos

Answer 4

• While the option clause lacked specific detail, nevertheless it was in the same terms as the contract of the sale that had been completed if the option were to be taken up.

Question 5

Hollier v Rambler Motors

Answer 5

• A failure to sign a document on one occasion did not prevent the terms in that document being present in the contract if it was merely an oversight in not signing the document on that particular occasion.

Question 6

Shell UK Ltd v Lostock Garage Ltd

Answer 6

• Lostock argued there was a term in the contract that Shell would not abnormally discriminate against them. This argument failed as Shell would never have agreed to such a term.

Question 7

Egan v Static Control Components (Europe) Ltd

Answer 7

• The court decided that a reasonable person would assume that the guarantee applied to both existing and future debts.

Question 8

Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd

Answer 8

• The court set out the current position with respect to when terms may be implied in a contract.