Terms of a contract - Intro & Incorporation

Question 1

What is a term?

Answer 1

Terms of a contract are the contents of the contract. They define the rights and obligations of the parties.

Question 2

What is an express term?

Answer 2

Terms/statements made by parties by which they intend to be bound.

Question 3

What is an implied term?

Answer 3

Terms implied by fact or law.

Question 4

A contract must contain terms that are?

Answer 4

1. Complete: there must be no missing terms that are essential for the contract to take place. Parties cannot agree to insert such terms at some point in the future.
2. Clear and unambiguous: if the terms are unclear, the court will decide them for the parties using an objective test.

Question 5

If the parties want to vary the terms of a contract, they have two options:

Answer 5

1. Exchange fresh consideration
2. Sign a deed which amends the terms of the contract (remember - no consideration is needed for a deed)

Question 6

What are the methods of incorporation an express term?

Answer 6

1. In a written document signed by both parties or orally agreed.
2. Incorporating written terms not contained in the contract:
   Three requirements:

a.) the terms must be contained in a contractual document (i.e., not a ticket or receipt)

b.) notice of the terms must be given at the time of contracting

c.) reasonable steps must be taken to bring the terms to the attention of the counterparty
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