The Terms Of A Contract

1312 Words Dec 9th, 2015 6 Pages
The terms of a contract refer to the obligations of the parties entering into the contract. These terms are the contents of the contract, which determine the parties’ rights and obligations. Consequently, the law classifies the terms in two ways. Firstly, the law can look at the terms according to the consequences of breach involving the nature of each term as a condition, warranty or innominate. Secondly, they may investigate the method through which the terms got into the contract, explicitly or implicitly. Courts have the option to examine these two methods to reach an understanding of the obligations of each party in the contract breached by one party. In reference to the first method, this essay will focus on the ability of implicit terms to enter into a contract. An implicit term is not expressly agreed to by the parties, but nevertheless are either read into the contract or arise from other sources of law. To clarify, parties may not have expressly included the term due to forgetfulness, previous contract with the party or because it may have been obvious due to the parties presence in the same trade. If the parties do not include a term, the court can imply a term for business efficacy. This is done in order to make a contract work. Accordingly, the court aims to make valid the intention of the parties. The Moorcock (1889) involved a term not included, but of such an obvious nature that the parties did not think to include it in the contractual terms. Subsequently,…
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