Express and Implied Terms

• What is the subject matter of a contract specifically agreed upon called?

  Terms
• What happens if a term in a contract is not carried out?

  The contract is breached
• What are statements of opinion and trade puffs considered in contract law?

  Representations
• What is the legal consequence if a representation in a contract is untrue?

  Misrepresentation
• What factors do courts consider when deciding if a statement is a term or a representation?

  • The importance attached to the statement
  • Special knowledge or skill of the person making the statement
  • The time elapsed between the statement and the contract being made
• According to contract law, what happens if a statement is so important that a party would not have entered the contract without it?

  It will be a term of the contract
• In Couchman v Hill (1947), why was the statement about the heifer's pregnancy considered a term of the contract?

  It was important to the buyer
• In Oscar Chess v Williams (1957), why was the seller's statement about the car's model not considered a term?

  The buyer was an expert car dealer
• In Dick Bentley Productions v Harold Smith (Motors) (1965), why was the car dealer's statement about the mileage considered a term?

  The seller had specialist knowledge
• What are terms that are explicitly stated within the contract called?

  Express terms
• What are terms that are not explicitly stated in the contract but are still part of the agreement called?

  Implied terms
• What are the three ways terms can be implied by common law?

  • Necessity
  • Custom
  • Previous course of dealings
• Under common law, what must a term be to be implied by necessity?

  Necessary to make the contract work
• What is the 'officious bystander' test used to determine?

  Implied terms
• According to the 'officious bystander' test, would terms be implied if the parties would never have agreed to them had they thought about it?

  No
• In Shell UK Ltd v Lostock Garage Ltd [1977], why did the argument for an implied term fail?

  Shell would never have agreed to it
• What would a reasonable person have understood to be the intention of both parties in the context of the contract?

  Genuine implied terms
• If something has happened over a long period of time, what does it become?

  Customary
• In Egan v Static Control [2004], what did a reasonable person assume about the guarantee?

  Applied to both existing and future debts
• What must custom do if it is to be implied into a contract?

  Help to support the purpose of the contract
• In Hutton v Warren [1836], why was the tenant farmer entitled to an allowance?

  Local custom
• What may the prior conduct of the parties indicate?

  Terms to be implied
• In Hillas v Arcos [1932], what was implied regarding the option to buy timber?

  Same terms as the previous contract
• Which types of contracts does the Consumer Rights Act NOT apply to?

  Private sales or business-to-business
• What Act implies terms similar to the Consumer Rights Act into non-consumer contracts?

  Sale of Goods Act 1979
• Which Act implies a condition that the seller has the right to sell the goods?

  Sale of Goods Act 1979
• What is an implied term 'as to title' under the Sale of Goods Act 1979?

  Seller has the right to sell
• According to s13 of the Sale of Goods Act 1979, what must goods sold solely by description do?

  Correspond with that description
• According to s14 of the Sale of Goods Act 1979, what is implied about goods in business-to-business contracts?

  Goods are of satisfactory quality
• According to s15 of the Sale of Goods Act 1979, what is implied about goods and a sample?

  Goods will correspond with sample
• What does section 13 of the Supply of Goods and Services Act 1982 imply about services carried out in a business?

  Reasonable care and skill
• What does section 14 of the Supply of Goods and Services Act 1982 imply when no time is specified for a service?

  Service carried out within reasonable time
• According to s15 of the Supply of Goods and Services Act 1982, what is implied when no price has been agreed for a service?

  A reasonable charge is payable
• Why have successive governments introduced statutory terms into contracts?

  Balance power of consumer and businesses
• Which Act is concerned with contracts between traders and consumers?

  Consumer Rights Act 2015
• According to the Consumer Rights Act 2015, what is a trader?

  Person acting for trade purposes
• According to the Consumer Rights Act 2015, what is a consumer?

  Individual acting outside of trade
• According to the Consumer Rights Act 2015, can a company be a consumer?

  No
• What types of contracts does the Consumer Rights Act cover?

  Goods, services and digital content
• Under ss31 and s57 of the Consumer Rights Act, what are parties prohibited from doing?

  Excluding terms with an exclusion clause