Implied Contractual Terms

The law will often imply certain contractual termsexpressed in statute, for example the various
in addition to those expressly agreed byconsumer rights on sales contracts under the Sale
contracting parties. Terms which give effect toof Goods Act, 1893. In sales of goods by
the contract and to the intention of the parties willdescription, it is an implied contractual term by
be implied into such contracts, either by thestatute that the goods should answer the
courts, by specific statute or by custom or usage.description and be of merchantable quality.
Contractual terms which are imputed intoStatute law often codifies aspects of the
contracts by the UK courts, tend to give efficacycommon law, and confers rights on parties, implied
to the particular transaction so as to prevent aninto contract, to repudiate or rescind agreements
obvious injustice which would arise on a rigidand to sue for damages in respect of breach of
interpretation of the express terms agreed.contract. It is not uncommon for sellers to seek
Courts have implied terms into contracts forto expressly exclude the operation of implied
leases of dwellings that landlords shall taketerms by statute, however certain implied terms
reasonable care to ensure the dwelling is in ain particular in respect of consumer rights cannot
reasonable state of repair. While it is settled lawbe excluded or limited.
that a court has the power to imply terms intoContracts can also be subject to terms founded
agreements, nothing shall interfere with the rightsby custom or usage through course of dealings,
of contracting parties have to expressly excludethough not expressed by the parties. A custom
such terms, in the body of such agreement.can be incorporated into contract only if there is
Terms are often implied by courts intonothing expressly or impliedly in the terms of the
employment contracts, in particular in situationscontract that prevent its inclusion. Customs can
where terms inadequately outline the rights andoften be a part of a particular trade or business
duties of the employer and employee, forsector, but to have effect they must reinforce
example, it is readily implied that an employee hasand assist the agreed contractual terms.
a duty of loyalty to his employer. Terms will beImplied terms are a very important aspect of
implied into business dealings between partiescontract law and it is essential for business and
where necessary to give business efficacy to thecontractual efficacy that there is some incursion
transaction, for example where inadvertentinto the expressly agreed contractual terms of
omission of a condition by the parties has arisen.the parties.
Contractual terms binding on the parties are often