Implied terms are terms that are included in the contract, even though they are not set out in writing. They may be implied into a contract in the following ways:
1. By Custom: Any relevant custom in the field of business in which the contract is made may be incorporated as an implied term. If there is an express term stating anything to the contrary, the socalled implied trem will not be implied into the contract.
2. Intention of the Parties: Under this head, a term will be implied into a contract if:
- it is so necessary the contract would not work without it, or
- it is a term so obvious that if an officious bystander were to ask both parties why they did not include that term in the contract the response would be that it goes without saying that it is a term
3. By Statute: Terms may be implied into a contract by Statute.
For contracts involving the sale (or supply, such as hire) of goods, the implied terms are:
- The seller must have the right to sell the goods. If you buy something from someone who is not entitled to sell it, you have the right to get your money back (but will probably not be allowed to keep the goods).
- Goods must match their description. This includes any description on a label, and claims made by the seller or the manufacturer of the goods.
- Goods must be of satisfactory quality and performance. This includes appearance and finish, freedom from minor defects, durability and safety.
- Goods must be fit for the purpose. They must be fit for any normal use, and for any particular purpose that the customer has said he wants to use them for.
- If a batch of goods is being sold after providing a sample, the goods must match the sample.
These implied terms apply to second-hand and sale goods as well. However, goods can have defects if the seller has pointed them out to the purchaser, and 'satisfactory quality' is likely to be lower for second-hand goods than for new ones.
For contracts involving services:
- The service must be carried out with reasonable care and skill.
- The service must be completed within a reasonable time (if a time limit has not been agreed in advance).
- The service must be provided for a reasonable price (if a price has not been agreed in advance).
