2.32 Express & Implied Terms

What are express terms in a contract?

• Clear and explicit agreements

• Unwritten terms inferred by industry customs

• Terms inferred by the courts

• Terms automatically implied by statutes

Which test asks whether an implied term is necessary to give the contract business efficacy?

• The Business Efficacy Test

• The Statute Test

• The Officious Bystander Test

• The Custom Test

What is the purpose of implied terms in a contract?

• To create ambiguity

• To confuse the parties involved

• To make the contract workable

• To limit the rights of the parties

What is the main source of implied terms by custom?

• Negotiations

• Industry customs

• Courts

• Statute

Which type of term is considered the foundation of the contract and can lead to termination if breached?

• Exclusion Clauses

• Warranties

• Conditions

• Innominate Terms

What is the purpose of exclusion clauses in a contract?

• To limit a party's liability for certain breaches

• To nullify the contract

• To increase the risk for both parties

• To confuse the terms of the contract

What is the Officious Bystander Test used for in contracts?

• To determine if a term is implied by statute

• To determine if a term is clear and explicit

• To determine if a term is necessary for business efficacy

• To determine if a term is implied by custom

Which type of term falls somewhere between conditions and warranties in a contract?

• Express Terms

• Innominate Terms

• Exclusion Clauses

• Implied Terms

What is the Sale of Goods Act 1893 an example of in terms of implied terms?

• Implied Terms by Statute

• Implied Terms by Custom

• Implied Terms by Courts

• Express Terms

What is the purpose of the Business Efficacy Test in contracts?

• To determine if a term is implied by custom

• To determine if a term is implied by statute

• To determine if a term is necessary for business efficacy

• To determine if a term is clear and explicit