Contract Law - Implied Terms - By custom and by common law

These are the other two ways in which terms can be implied into a contract.

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  • Created by: Emma
  • Created on: 27-05-09 13:23

1. Terms implied by custom are terms which are implied into a contract as a result of a local or trade use, i.e. custom

  • True
  • False
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2. What do terms implied by custom depend on?

  • Whether the court would be willing to apply a term that has been implied by custom
  • Duration, reasonableness, inconsistency with an express term of the contract, practicality and implication
  • Whether the custom in question is actually applicable in the area to which the contract relates

3. Which case illustrates terms implied by custom?

  • Hutton -v- Warren
  • Davey -v- Cosmos Air Holidays
  • Godley -v- Perry
  • Liverpool City Council -v- Irwin

4. In common law, terms can only be implied into a contract by law, i.e. "implied by law"

  • False
  • True

5. How can terms be "implied by law"?

  • Terms cannot be "implied by law"
  • Case law establishes that certain terms always appear in the type of contract under consideration
  • Just because the law says so
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