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 6: Terms Implied by Statute

Richard Austen-Baker

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


INTRODUCTION 6.01 Our examination so far has dealt with terms implied by the courts into particular kinds of contracts, or into contracts embedded in particular contexts. In this chapter we consider terms which are implied not by the courts but by statute. These terms have, on the whole, been derived from terms that once were implied by the courts, in the sense meant in Chapters 3 and 4, which subsequently underwent codification. Obvious examples of such terms are those in the Sale of Goods Act 1979. The implied terms in that Act were Sir Mackenzie Chalmers’ codification of terms which had become well-established by the time of the first Sale of Goods Act in 1893. There have been modifications since,1 which illustrate legislative activism through and about implied terms, as well as codification. 6.02 For the consumer, the implied terms in sale of goods contracts and hire purchase contracts probably represent (along with those in employment contracts) the most significant of all implied terms. For commercial parties, the significance is perhaps less marked, but clear all the same: most businesses are employers; all buy and many sell; many sell through hire purchase. 6.03 In this chapter we will consider the principal examples of terms implied by statute: those of the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982, the Supply of Goods (Implied Terms) Act 1973 and the Marine Insurance Act 1906, and consider the origins of those terms prior to statutory codification, their...

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