Implied Terms in English Contract Law

Implied Terms in English Contract Law

Richard Austen-Baker

Implied Terms in English Contract Law is a unique book dedicated to stating the law of England and Wales regarding the implication of terms into contracts. The law on this important subject is stated systematically and in detail, with the benefit of close analysis of the leading cases on implication at common law, by statute, by custom, trade usage, course of dealing and in fact.

Chapter 3: Terms Implied at Common Law I: General Principles

Richard Austen-Baker

Subjects: law - academic, commercial law, law of obligations


INTRODUCTION 3.01 This chapter concerns terms which are implied into all contracts of a particular type (unless the express words of the contract contradict the proposed implied term), where the implication is made by the courts as a necessary incident of the type of contract concerned, rather than being implied either by statute or else from custom or usage of the trade. As Lord Cross of Chelsea put it in Liverpool City Council v. Irwin: When it implies a term in a contract the court is sometimes laying down a general rule that in all contracts of a certain type – sale of goods, master and servant, landlord and tenant and so on – some provision is to be implied unless the parties have expressly excluded it.1 3.02 Probably the leading cases on this are now the House of Lords decisions in Lister v. Romford Ice and Cold Storage Co. Ltd,2 and Liverpool City Council v. Irwin.3 However, it would be useful to consider the [1977] A.C. 239 at 257. [1957] A.C. 555; [1957] 2 W.L.R. 158. 3 [1977] A.C. 239; [1976] 2 All E.R. 39; [1976] 2 W.L.R. 562. Applied in Ferguson v. John Dawson & Partners (Contractors) Ltd [1976] 3 All E.R. 817; [1976] 1 W.L.R. 1213; [1976] 2 Lloyd’s Rep. 669 (C.A.), Wettern Electric Ltd v. Welsh Development Agency [1983] Q.B. 796; [1983] 2 All E.R. 629; [1983] 2 W.L.R. 897 (Q.B.D.), Southern Water Authority v. Carey [1985] 2 All E.R. 1077 (Q.B.D.), Tadd v. Eastwood [1985] I.C.R. 132;...

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