What is an Implied Term in Contract? A contractual term is any provision forming part of a contract. A term may either be expressed or implied. An express term is stated by the parties in a written contractual document or expressly mentioned during negotiations. Implied terms are those terms which the law implies into a contract notwithstanding the fact that they have not been discussed by the parties or referred to in a contract. They may be implied at common law or by statute. The common law may imply terms based on the actual or presumed intention of the parties. Such terms may be necessary to give business efficacy to a contract, may result from a course of dealings or may arise as a result of custom or trade usage. For example, in Lim Suat Hua v Singapore HealthPartners Pte Ltd [2012] 2 SLR 805, a term was implied into an employment contract to allow the employer to claim against the employee for leave taken in excess of entitlement. Sometimes something is so obvious in the circumstances that it need not be mentioned in the contract. For example, if you order a cake from the neighborhood bakery for thirty dollars, it probably would not occur to anyone to write down in the order document that it is thirty Singapore dollars (as opposed to US$ or NZ$ or any other sort of dollars). It is an implied term of the order that the price is in Singapore currency. An example of a term implied by statute is that where a seller sells goods in the course of a business, the goods supplied under the contract must be of satisfactory quality (Section 14, Sales of Goods Act).
Posted on: Wed, 10 Jul 2013 00:36:57 +0000
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