Contracts
4. Terms of the Contract
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 19 Jul 2015
- The rights and obligations of a party are set out in the terms or clauses of a contract.
- The terms can be express (either written or oral) or implied.
- Express terms clearly state what has been agreed to.
- Implied terms are terms that the parties should have added but did not think to include in their contract. These terms are added to the contract by common law or by statute.
- Terms are implied at common law when it is necessary to give full effect to the intention of the parties.
- A court may imply standard terms into a contract (standard implied terms) or terms the court feels the parties would have agreed on had they considered the issue when entering into the contract (these are called ad hoc implied terms).
- Ad hoc implied terms arise:
- where it is necessary to give business effectiveness to the contract;
- as a result of the course of dealings between the parties; and
- through well-known custom or trade practice.
View more Information on Business & Company