Contrcat Law Implied Terms

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be bound by terms which they never agreed to. But, the idea of implying terms into a contract is well-established and serves a number of different purposes.
The courts will imply a term into a contract if they believe that the addition is necessary to make the contract truly reflect the intentions of the parties . There are various types of implied terms, ranging from an implied term argued for because the contract is simply silent about some important matter, to those implied into certain types of contracts because legislation - usually consumer protection legislation - so provides. In such cases, where certain terms are implied into particular contracts as a result of legislation, the courts are bound by the legislation and must treat the contract as containing the statutory implied term irrespective of the perceived intentions of the parties .

There are four main circumstances that give rise to implications and allow the courts to imply terms into a contract. These are ...

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into the contract. In Con-Stan Industries of Australia Pty Ltd v. Norwich Winterthur (Australia) Ltd (1986) 64 ALR 481, the court summarised the following common law rules in relation to terms implied by custom or usage :

� The implied custom or usage is not subject to interpretation. It either exist or it does not .
� The custom must be so well known and relied on that everyone in that business would presume the custom into the contract .
� A term will not be implied into a contract in cases where it is contrary to the expressed terms of the contract .
� A person may be bound by a custom of which they had no knowledge. Whether a custom or usage is read into a contract as a ...

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