10 - Contract Terms

Question 1

what are express terms

Answer 1

a term agreed by parties either orally or in writing during formation of contract

Question 2

what are implied terms

Answer 2

terms that aren’t agreed by parties but are incorporated into contract

Question 3

how are implied terms incorporated into the contract

Answer 3

• by statute, eg consumer rights act 2015
• by custom, eg through trade usage
• by courts, to give business efficacy
• collective agreements between employers and trade unions

Question 4

types of terms and what they are

Answer 4

1. condition = fundamental, breach of condition gives innocent party right to repudiate and claim damages
2. warranty = collateral to main purpose of contract
3. innominate terms = cant be classified as condition/warranty until contract breached, whether or not innocent party loses the whole of the benefit of the contract