Week 7 - How Terms are Incorporated into Contracts

Question 1

What are the 4 way terms can be incorporated into a contract?

Answer 1

• express terms
• implied by the courts terms
• implied by customs and prevailing dealings
• implied by statute

Question 2

Define express terms

Answer 2

Terms contained within the offer, which become part of the contract once accepted

Question 3

Define implied by the courts terms

Answer 3

If a term was obviously intended to be part of a contract, but was omitted, the court will imply the term for business efficacy - business efficacy being what will make the contract work and be fair

Question 4

Define implied by customs and prevailing deals

Answer 4

Courts may imply terms if customary in particular trade or locality