Express v Implied Terms in Contract Law

Express Terms

Express terms are those that are stated or written by parties to a contract (Richards, 2006). Contracts that have written express terms e.g. sale of goods, promissory note, hire purchase, etc. This type of contract overrides any oral agreement except when the oral agreement is more accurate than the written statement and when the meaning of a term was explained incorrectly before the contract was made.

Implied Terms

Implied terms are those that can be identified within the contract by reading the intentions of parties, but are not stated or written anywhere in the contract (Richards, 2006). Contracts may involve implied terms including employment contracts which do not have any written agreement. In this case, the contract is considered to be implied on the terms of employment applied in the overall industry. Terms may be implied by statute, custom, trade usage or fact. Those implied by statute include employment contracts which are often implied in all employment contracts. Some terms may be implied by custom e.g. offering gifts for every purchase of a kilogram of cooking fat should apply to all customers.

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