Sources of terms

• what are the 2 main sources of terms?

  Express, implied
• What does express mean?

  Terms in a contract to which the parties agreed to when the contract was made.
• What does implied mean?

  Terms that are not in a contract but exsist because of statute, courts or custom.
• What are express terms?


  Terms agreed by the parties in writing or orally. When parties write down terms they are bound by all of it. They cannot add to it or change it.
• where is the Parole Evidence rule from?

  Goss v Lord Nugent
• what did the Parole Evidence Rule say?

  A written contract cannot be altered or contradicted by an oral statement. Nothing extra can be added to it.
• where does the rule from L'Estrange come from?

  L'Estrange v Graucob
• What did the rule from L'Estrange say?

  A person signing a contract is bound by it whether he has read it or not.
• What if the term us harsh or unusual?

  It is brought to the parties attention to be incorporated. E.g: highlighted, in bold, at the beginning of the contract.
• In what case was a chrage of £5 per day per photo which resulted in £23,000?

  Interfoto
• In what case was the term inside the car park?

  Thornton
• In what case was a receipt a contractual type of document and why?

  Parker because it recquired to get left luggage back
• In what case was the employee timesheet not a contractual type of document?

  Grogan because it was formal and the terms on it were not incorporated in the main contract
• What are implied terms?

  Terms that can be included in a contract even though not written on it. This is to give effect to intention of parties (implied by fact) or include leagal obligations (implied by law).
• What is business efficacy?

  Terms implied by common law to make contract function and reflect parties' intention.
• What is a case of business eficacy?

  The Moorcock
• What happenbed in The Moorcock?

  The water was too shallow for the boat to be moored and damaged it. A term that the boat would not be damaged by shallow water was implied to achieve the purpose of the contract.
• where does the officious bystander test come from?

  Shirlaw v Southern Founderies
• What does the officious bystander test mean?

  Bystander, watching the agreement, would suggest a term be included and parties would reply "oh of course".
• what becomes customary?

  If something has happened over a long period of time.
• What do certain business have?

  usual conditions of practice
• What case is an example of customary?

  Hutton v Warren
• What happened in Hutton v Warren?

  an entitlement to a seed and labour allowence was a custom included in the contract
• What do the consumer right Act 2015 give?

  consumer rights and traders a duty
• Where does the CRA 2015 apply?

  contracts of items for sale, HP, hire or transfer of goods
• What does S.9 state?

  quality of goods must be satisfacatory
• What does S.10 state?

  if a consumer explains what the goods are for before buying them, it is implied that the good will be fit for that purpose
• What does S.11 state?

  goods supplied by description must match it
• What type of dealings allow terms to be implied?

  Regular and consistent
• What case is an example of previous dealings?

  Hilas v Acros
• What happened in Hilas v Acros?

  when a dispute arose with the second contract, the terms from previous dealings were incorporated into it