Implied Terms

Question 1

What is an implication of fact?

Answer 1

• Implying a term based on a particular circumstances (tailor made)

Question 2

What is an implication of law?

Answer 2

• Implying a term based on statute, common law e.g sale contracts have specific legal requirements

Question 3

What test must a term pass in order to be implied? What case?

Answer 3

• Must pass the ‘officious bystander’ test, something that goes without saying. Gives ‘business efficacy to the transaction. E.g. Moorcock (obvious D should have taken reasonable care of the boats).