Terms: Implied Terms P3 Section B

Question 1

what are express terms

Answer 1

specifically identified and agreed by the parties

Question 2

what are implied terms

Answer 2

terms put into contracts under certain circumstances

Question 3

what are the three main ways implied terms can be put into contracts

Answer 3

By custom or trade usage
By the common law
by statute

Question 4

what is meant by custom/trade usage

Answer 4

where certain terms are usual in a type of contract so apply if not specifically stated

Question 5

what is the case for custom/trade usage

Answer 5

British Crane Hire Corp v Ipswich Plant Hire

Question 6

why was the term implied in British Crane Hire Corp v Ipswich Plant Hire

Answer 6

because it was a normal term in the contract

Question 7

what does common law terms implied by fact mean

Answer 7

terms where parities probably intended the situation to be covered by a term but did not specifically say it

Question 8

what does Irwin v lLCC say about implying through fact

Answer 8

House of Lords said that unless both partiers agree to the term it could not be implied through fact

Question 9

what is the case that figured out the two ways to work out if a contract is implied through fact via both parties

Answer 9

Marks and Spencer v Paribas

Question 10

what are the two ways Marks and Spencer v Paribas confirmed could work this out

Answer 10

the business efficacy test
the officious bystander test

Question 11

what is the business efficacy test

Answer 11

this is where the contract simply would not work/ make sense without the term therefore it must have been the parties intent to include it

Question 12

what is the case for the business efficacy test

Answer 12

The Moorcock

Question 13

how was this test used in The Moorcock

Answer 13

the court implied a term that meant the ship would be safe to be docked
court said this term was necessary to give contract business efficacy

Question 14

what is the case for the officious bystander test

Answer 14

Shirlaw v Southern Foundries

Question 15

what is the officious bystander test

Answer 15

a term is implied in a contract where it is so obvious it goes without saying
if an obvious bystander were to suggest were to suggest the term to the parties while they were making the contract would they say ‘yes of course’

Question 16

what is the main act for terms implied by a statute

Answer 16

Consumer Rights Act 2015

Question 17

explain the CRA 2015

Answer 17

the CRA implies terms into all contracts for the sale of goods and services between consumers and traders . does not apply to B2B contracts

Question 18

what Section defines a consumer and trader

Answer 18

S2

Question 19

S2 defines a consumer as

Answer 19

someone acting for the purposes wholly or mainly outside their trade, business, craft or profession

Question 20

S2 also defines trader(business) as

Answer 20

someone who acts for purpose relating to that persons trade , business craft or profession. extends to the third parties acting on behalf of business

Question 21

what is the section for satisfactory quality

Answer 21

S9

Question 22

what does S9 say

Answer 22

this section of the act states that when a seller sells goods in the course of business the goods will be satisfactory quality

Question 23

what is the standard of satisfactory quality judged by

Answer 23

what reasonable person would consider satisfactory

Question 24

what different issues will the judges take into account when deciding satisfactory quality

Answer 24

the price paid for goods
any description of quality
the goods must be fit for their purpose
the goods should be safe
the goods should be durable

Question 25

what is the section for fitness for specific purpose

Answer 25

S10

Question 26

what does S10 state

Answer 26

where the seller tells the buyer that goods are for a particular purpose there is an implied term that goods will be fit for particular purpose sellers may be able to get out of this if they can show buyer did not rely on sellers skill and judgement when buying

Question 27

what is the case for S10

Answer 27

Baldry v Marshall

Question 28

why was the car not fit for purpose in Baldry v Marshall

Answer 28

the sports car was not easy to manage and not comfortable for ordinary driving as the seller was a car dealer and had been told the desired reason for the car it was reasonable to assume they would give the buyer a car fit for purpose

Question 29

what is the section for description

Answer 29

S11

Question 30

what does S11 state

Answer 30

there is an implied condition that where goods are sold by description they correspond with that description

Question 31

what is the case for S11

Answer 31

Re Moore and Co

Question 32

what are the remedies for goods

Answer 32

S20 CRA S23 CRA S24 CRA

Question 33

what is S20 CRA

Answer 33

short term right to reject

Question 34

what is S23 CRA

Answer 34

right to repair and replacement

Question 35

what is S24 CRA

Answer 35

right to price reduction or final right to reject