Implied and Express Terms

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  • Created by: em.101
  • Created on: 23-11-17 12:11
Define 'implied' ?
Added (terms into the contract)
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What are the two types of terms?
(1) Express Terms (2) Implied Terms
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Express Terms
Agreed between the parties themselves
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Implied Terms
Terms that are incorporated into the contract by courts/ statute
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What is a Statute?
Legislation (the laws of the country)
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Terms implied by common law (courts)
(1) custom (2) in fact (3) at law
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Hutton v Warren /// British Crane Hire v Ipswitch (1: Custom)
Terms are implied into a case where there is a certain trade practice for a particular industry
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What are the 2 tests concerning terms implied IN FACT? (2: Fact)
(1) Business Efficacy (2) Officious Bystander
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Business Efficacy (BE) Test (2: Fact)
Courts add implied terms that give effect to what the parties would have actually intended
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The Moorcock (BE test)
courts IMPLIED terms concerning the river bed, using the BE test.
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The Officious Bystander Test
Would a "reasonable person" believe said term should be incorporated
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Shirlaw v Southern Foundries (OB test)
Terms will be IMPLIED into a contract if courts deem that a "reasonable person" would assume these to be in the contract
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Shell v Lostock Garages (OB test exception)
Terms will not be IMPLIED if they are unnecessary, as it makes BUSINESS SENSE without it.
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Liverpool City Council v Iriwn (2: Law)
Courts IMPLIED a term stating the council had an obligation to repair flats as it would have been IN THE MINDS OF BOTH PARTIES
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Wilson v Best Travel (2: Law)
In contracts of SERVICE, there is already an IMPLIED term that the service will be carried out with reasonable CARE and SKILL.
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What are the 3 acts for Statutory Implied Terms?
Sale of Goods Act 1979 /// Supply of Goods & Services Act 1982 /// Sale Supply Goods to Consumer Regulations 2002
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Sale of Goods Act 1979 (4 protections)
(1) right to sell: S12 (2) description: S13 (3) quality: S14 (4) sample: S15
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SGA 1979 (1) : S12
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Rowland v Divall
No right to sell if goods are stolen
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Niblett v Confectioners' Material
No right to see if a person uses the identity of another firm's logo/ reputation
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SGA 1979 (2) : S13
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Beale v Taylor
Incorrect description allows a buyer to end the contract (+claim damages)
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Harlington & Leinster v Christopher Hull Fine Art
(EXCEPTION) can't claim damages if buyer showed no reliance on the description
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SGA 1979 (3) : S14
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Caveat Emptor
"let the buyer beware" - business sales only
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Rogers v Parish /// Barnstein v Pamsons Motors
Consumers may return faulty goods if they break after a short period of time
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Frost v Aylesbury Dairy
a seller cannot exclude liability even if he proves he was unaware of the unsatisfactory quality
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Griffins v Peter Conway
consumers can't claim damages for unsatisfactory quality if it is only unsatisfactory for yourself (+ haven't made seller aware)
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SGA 1979 (4) : S15
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Drummond v Van Inger Griffins v Peter Conway
samples should correspond to what is being bought
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Supply of Goods and Services 1982
s13 / s14 / s15
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SGS 1982 : S13
Business: reasonable care and skill
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SGS 1982 : S14
Business: reasonable time, dependent on circumstances
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SGS 1982 : S15
Business& Private: no price agreed means there is an IMPLIED TERM a reasonable price will be charged
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Sale Supply of Goods to Consumer Regulations 2002
S48: repair/ replacement ordered in reasonable time / not valid if buyer contributed to faultiness of goods
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Card 2


(1) Express Terms (2) Implied Terms


What are the two types of terms?

Card 3


Agreed between the parties themselves


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Card 4


Terms that are incorporated into the contract by courts/ statute


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Card 5


Legislation (the laws of the country)


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