Implied Terms

What are Implied Terms in Contract Law?

Quick Definition

Implied terms are provisions that are not expressly written into a contract but are still considered part of it. They can be implied by statute, custom, or by courts to reflect the presumed intention of the parties. Their purpose is to fill gaps and make contracts workable and fair.

In Context

Implied terms often arise where a contract would otherwise be incomplete or ineffective. Courts may imply terms in fact to give business efficacy to an agreement, as seen in The Moorcock, where a term was implied to ensure a ship could safely berth. Terms can also be implied in law into certain types of contracts, such as employment agreements, to reflect consistent legal standards. Additionally, statute plays a major role, particularly under legislation like the Sale of Goods Act, which implies terms about quality and fitness. Courts are generally cautious and will not imply terms simply because it seems reasonable; the term must be necessary for the contract to function properly.

See Also

• Express Terms

• Breach of Contract

• Statutory Interpretation

Learn More

Explore our Contract Law Notes for deeper case law, examples, and revision tips.