BL – May 2017 – L1 – SB – Q4a – Law of Contract

Examines ways in which terms can be read into a contract as if both parties agreed.

Question

The terms of a contract may be express or implied.

Required:
State THREE ways by which a term may be read into a contract as if the parties had agreed to them.

Answer

By statute: Certain terms are implied by legislation, such as the Sale of Goods Act, which may impose terms regarding quality or fitness of goods.
By custom or usage: Terms that are so widely accepted in a particular industry or trade can be implied, especially when both parties are involved in that industry.
By the courts: Courts may imply terms into a contract based on the necessity of the situation or the obvious intention of the parties, even if they were not expressly agreed upon.