Terms (OCR A-Level Law): Flashcards

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Implied Terms
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What are implied terms?

Unspoken/unwritten obligations in contracts by law/custom

3 methods to imply terms into contracts

Custom, statute, fact

Business efficacy test (The Moorcock 1889)

Term implied if contract commercially pointless without it

Officious bystander test (Shirlaw 1939)

Would both parties say 'oh, of course!' if term suggested?

Necessity test (Liverpool CC v Irwin 1977)

Implied term must be necessary, not just reasonable

Marks & Spencer v BNP Paribas 2015 key principle

Term only implied where strictly necessary for business efficacy

CRA 2015 s9: Goods must be...

Of satisfactory quality

CRA 2015 s10: Goods must be...

Fit for particular purpose stated by consumer

CRA 2015 s49: Services performed with...

Reasonable care and skill

Grant v Aust. Knitting Mills 1936 principle

Implied terms protect parties when express terms don't cover all

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