Implied Terms in Contract Law: Understanding Types, Tests, and Consequences, Exams of Contract Law

Download Implied Terms in Contract Law: Understanding Types, Tests, and Consequences and more Exams Contract Law in PDF only on Docsity! CONTRACT LAW REVIEW NOTES IMPLIED TERMS - Implied terms are terms that are not expressly stated in a contract but are nonetheless understood to be included based on various factors such as custom, usage, or the parties' intentions. - In UK contract law, implied terms are an important aspect of contract interpretation and can have a significant impact on the rights and obligations of the parties involved. Types of Implied Terms: - Terms Implied by Law: These are terms that are automatically included in all contracts by operation of law. For example, the duty of good faith and the duty to perform the contract with reasonable care and skill. - Terms Implied by Fact: These are terms that are inferred by the courts based on the specific circumstances surrounding the contract. This may include terms implied through custom or trade usage. - Terms Implied by Custom or Trade: - Custom: Implied terms based on a longstanding and widely recognized practice within a particular industry or geographical area. - Trade: Implied terms based on the usual practices and expectations of parties engaged in a specific trade or business. The Test for Implying Terms: - In UK contract law, the courts will imply terms into a contract if they are necessary to give business efficacy to the contract or if they reflect the parties' intentions. - The courts will also consider whether the implied term is so obvious that it goes without saying or whether it is necessary to achieve the parties' objective. - The courts will not imply terms if they contradict the express terms of the contract or if they are inconsistent with the parties' intentions. The Implied Terms Act 1999: - The Implied Terms Act 1999 codifies the common law principles related to implied terms in contracts. - The Act provides guidelines for when terms should be implied in a