Implied Terms

Question 1

What is an Implied Term?
- types of implied terms?

Answer 1

A term implied into a contract through common law
- Business efficacy
- Custom/Prior Dealings
- Statute

Question 2

Explain Business Efficacy
- Case establishing it

Answer 2

Court implied terms when necessary to give transaction such business efficacy as the parties must have intended
- The Moorcock

Question 3

Explain the Officious Bystander test
- With case

Answer 3

A term to be implied only if necessary to make contract work when:
- Its so obvious it goes without saying
- It’s necessary to give contract business efficacy

Ali v Petroleum Company of Trinidad & Tobego

Question 4

Which case further develops step 2 of the Officious Bystander Test?

Answer 4

Shell v Lostock Garage
- To be implied, Parties would’ve agreed to it

Question 5

Which cases establish Implied terms through customs and prior dealings?

Answer 5

Hutton v Warren
- Custom

Hillas v Arcos
- Prior Dealings

Question 6

Which statute implies terms in contracts?
Which sections of statute?

Answer 6

Consumer Rights Act 2015
s9 - satisfactory quality
s10 - fit for purpose
s11 - goods match description