9/10/2016

ConditionsImpliedandExpressSaleofGoodsAct
LegalServicesIndiaConditionsImpliedandExpress
ConditionsImpliedandExpress
Writtenby:SandeepBordoloiStudentofNationalLawUniversity,Jodhpur
Chatwithus(2PM9PMIST)

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ResearchMethodology
Area:Conditionsinacontract
Topic:Conditions:ImpliedandExpress
ResearchMethodology:Iwouldbedoingmyresearchfromdatacollectedfromsecondarysourceswhichwillincludematerialsavailableontheinternetand
books,magazinesandjournalsavailableinthelibrary.Theresearchwillbedeductiveinnatureandthefootnotingstylewillbeaspertheestablishedstandard
oftheUniversity.
Chapterisation:
ThefirstchapterconsistsoftheintroductionwhereIhavegivenabriefhistoryoftheSaleofGoodsActandtherelevantsectionsregardingthedifferent
typesofconditions.ThenIhavegoneontogivethecaseswherethetermconditionhadfirstbeenusedfollowedbythedifferenttypesofconditionsandhow
theyareunderstoodinthemoderndaylaw.
InmysecondchapterIhavegonetoexplainconditionsindetailandthedifferentclassificationofconditions.Ihavealsorelatedtermswithconditions.
MythirdchapteristhemaincruxofmytermpaperinwhichIhaveexplainedimpliedconditions,howtheyoriginated,howthecourtsperceivedimplied
conditionsandtheevolutionoflawrelatingtothesetypesofconditionsandthemoderndaypositionofimpliedconditions.
Myfourthchapterconsistsoftheproblemswhichmayarisewhenthecourtinterpretsimpliedconditions.DuetolackofmaterialregardingthispointIhave
focusedmychapteronaparticularcasewhichhighlightsthisproblemveryclearly.
MylastchapterismyconclusioninwhichIhavesummedupmytermpaper.

Objectives:
1.Tounderstandtheoriginandmeaningofthewordcondition.
2.Tounderstandthedifferenttypesofconditions.
3.Tounderstandandstudycasesoncontractsinwhichdifferenttypesofconditionshavebeenused.
ResearchQuestions:
1.Whatareexpressandimpliedconditions?
2.Whatistheroleofthecourtsininterpretingimpliedconditions?
3.Whataretheproblemsthatmayariseduringtheprocessofinterpretation?
(ChapterI)Introduction
TheAct
SaleofGoodsActisoneofveryoldmercantilelaw.SaleofGoodsisoneofthespecialtypesofContract.Initially,thiswaspartofIndianContractActitselfin
chapterVII(sections76to123).LaterthesesectionsinContractActweredeleted,andseparateSaleofGoodsActwaspassedin1930.TheSaleofGoods
ActiscomplimentarytoContractAct.BasicprovisionsofContractActapplytocontractofSaleofGoodsalso.
Theuseofthewordconditionappearstohaveoriginatedinthe17thcentury.TheSaleofGoodsAct,1930definesthetermconditioninsection12(2).
Accordingtothisdefinitionaconditioncanbedefinedasastipulationwhichissovitaltothecontractthatitscompleteandexactperformancebyonepartyis
somethingprecedenttotheobligationoftheotherpartytoperformhispart.
ConditionsandWarranties
Openingparaofsection16makesitclearthatthereisnoimpliedwarrantyorconditionastoqualityoffitnessofgoodsforanyparticularpurpose,exceptthose
specifiedinSaleofGoodsActoranyotherlaw.Thisisthebasicprincipleofcaveatemptor'i.e.buyerbeaware.However,therearecertainstipulations
whichareessentialformainpurposeofthecontractofsaleofgoods.Thesegotherootofcontractandnonfulfilmentwillmeanlossoffoundationofcontract.
Thesearetermedas'conditions'.Otherstipulations,whicharenotessentialaretermedas'warranty'.Thesearecollateraltocontractofsaleofgoods.Contract
cannotbeavoidedforbreachofwarranty,butaggrievedpartycanclaimdamages.Abreachofconditioncanbetreatedasbreachofwarranty,butviceversa
isnotpermissible.
Astipulationinacontractofsalewithreferencetogoodswhicharethesubjectthereofmaybeaconditionorawarranty.[section12(1)].Aconditionisa
stipulationessentialtothemainpurposeofthecontract,thebreachofwhichgivesrisetoarighttotreatthecontractasrepudiated.[section12(2)].Awarranty
isastipulationcollateraltothemainpurposeofthecontract,thebreachofwhichgivesrisetoaclaimfordamagesbutnottoarighttorejectthegoodsand
treatthecontractasrepudiated.[section12(3)].Whetherastipulationinacontractofsaleisaconditionorawarrantydependsineachcaseonthe

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constructionofthecontract.Astipulationmaybeacondition,thoughcalledawarrantyinthecontract.[section12(4)].
Whereaparticularstipulationincontractisaconditionorwarrantydependsontheinterpretationoftermsofcontract.Merestating'ConditionsofContract'in
agreementdoesnotmeanallstipulationsmentionedare'conditions'withinmeaningofsection12(2).
ExpressConditions
Conditionsthatareagreedtobytheparties,arecommonlyreferredtoasexpressconditions.Expressconditionsareusuallydenotedbylanguagesuchas"if",
"onconditionthat","providedthat","Itheeventhat",and"subjectto"tomakeaneventacondition.Butusuallyinadisputeitisthecourtwhichdecides
whetheranagreementmakesanevenaconditionbytheprocessofinterpretation.
ImpliedConditions
Ifanagreementdoesnotmakeaneventaconditionthenthecourtmaysupplyatermthatdoesso.Suchconditionswillbereferredtoas"implied"conditions,
sinceacourtusestheprocessofimplicationtodeterminewhethertosupplyatermthatmakesaneventaconditionandwhattermtosupply.Thedistinction
betweenexpressandimpliedconditionsisofpracticalimportancebecausetheruleofstrictcomplianceislimitedtoexpressconditions.
(ChapterII)Conditions:MeaningandTypes
Conditiongenerallyreferstopromisesandthedutiestheygenerate.Itisusuallyaneventofsignificancebutthisisnotalwaysthecaseasthepartiesifthey
sowishcanevenmakeaninsignificanteventacondition.ConditioncanbedefinedassomeoperativefactAlmostanyeventcanbeaconditionandwhethera
stipulationisaconditionornotcanbedecidedonlyafterlookingatthecontractinthelightofthesurroundingcircumstancesandthendecidingontheintention
oftheparties.Inpresentdaycontractsallconditionsrefertosomeoperativefactwhichhasnotyetoccurredbutwhichmustoccursoastopreventfrustration
ofthecontract.
Whenatermwillbeacondition?
Theleadingtextbooksoncontractstatethatatermwillbeaconditionifitsatisfiedoneofthefollowingfourtests,namely
(a)ifstatuteprovidesthatitisacondition
(b)ifabindingauthorityrequiresacourttoholdthatitisaconditionifeverybreach,or
(c)iftheconsequencesofeverybreach,goestotherootofthecontractor,
(d)Ifthepartieshaveagreedthatitistobetreatedasacondition.
Thefirstthreeofthesetestsinvolvewellestablishedprinciples,butthefourthyetremainstobeclearlyestablished.
Expressagreementbythepartiesthatoneofthemshallbeabletoterminatethecontractonthehappeningofabreachofaparticulartermbythe,otherdoes
notautomaticallyentitletheotherpartytothefullbenefitswhichflowfromthattermbeingacondition.Theexpressagreementgivesanoptiontobringthe
contracttoanendonthebreachofthatterm,butsuchanoptionisnodifferenttoanoptiontobringacontractto,anendonthehappeningofanydefined
eventthefactthattheeventprescribedisabreachisimmaterial.Thereisanoption,buttheoptiondoesnotaffectthenatureoftheeventuponwhichthat
optionisexercisable.The,textbooks,therefore,aremisleadinginsofarastheysuggest,thatatermisaconditionwherethereisagreementbytheparties
thatitsbreachistogiverisetotheinnocentpartybeingabletoactasthoughthetermbreachedwereacondition,becausethecourthastherightto
investigatewhetheritisthesubstanceoftheagreementthatthetermisatruecondition,ormerelytheform.Ifitisjusttheform,thenthetermwillinnominate
andthe,quantumofdamageswilldependuponwhetherthebreachwasrepudiatoryatcommonlaw.
Classification
Conditionscanbeclassifiedintotwobroadcategories:
1.Expressconditions
2.Impliedconditions
Expressconditionisaconditionwhichhasbeenexpresslystatedinthetermsofthecontractfailureofwhichwillallowonepartytoeitherrepudiatethe
contractinwholeorclaimfordamages.Impliedconditionsarethosewhichhavenotbeenexpresslystatedbutwhichthelawpresumestobesoinherentlya
partofthecontractthatitneednotbelaiddowninclearandwrittentermsbutaretobeunderstoodbytheparties.
(ChapterIII)ImpliedConditions
Implicationofterms
Incertaininstances,thepartiestoacontractmayhavebeencontenttoexpressonlythemostimportanttermsoftheiragreement,leavingtheremaining
detailstobeunderstood.Thecourtwillthenbeaskedtoimplyatermortermstoremedythedeficiency.Moreoften,however,asubsequentdisagreement
revealsthattherearecontingenciesforwhichthepartieshavenotprovidedintheirexpresscontract.Thequestionisthenwhetherthecourtcanimplyaterm
tocoverthecontingencywhichhasunexpectedlyemerged.
Intentionormeaninginacontractmaybemanifestedorconveyedeitherexpresslyorimpliedlyanditisfundamentalthatthatwhichisplainlyornecessarily
impliedinthelanguageofacontractisasmuchapartofitasthatwhichisexpressed.Whatthefunctionofthelawisinsuchcasesistosupplyincontracts
whatispresumedtohavebeeninadvertentlyomittedortohavebeendeemedperfectlyobviousbytheparties,thepartiesbeingsupposedtohavemadethose
stipulationswhichashonest,fair,andjustmentheyoughttohavemade.Onceitisdeterminedwhattheimpliedprovisionsare,theyarereadintothe
contract,andtherightsofthepartiesaretobeadjudgedasthoughsuchprovisionswereexpressed.Impliedpromisesalwaysexistwhereequityandjustice
requirethepartytodoortorefrainfromdoingthethinginquestion.Thecourtsarejustlyprudent,careful,andcautiousinimplyingrights,obligation,promises,
orcovenants,lesttheymakethecontractspeakwhereitwasintendedtobesilentormakeitcontrarytowhat,asmaybegatheredfromallthetermsandthe
tenorofthecontract,wastheintentionoftheparties.Accordingly,whereacontractisreducedtowriting,itisgenerallyheld,intheabsenceofmistakeor
fraud,thatthewrittencontractincludesorembodiesthewholeagreementofthepartiesandallmaterialprovisions,andthat,therefore,noagreementofthe
partiesandallmaterialprovision,andthat,therefore,noadditionalagreements,obligations,orwarrantiescanbeimplied,ifthereistobeanyimplication,it
mustresultfromthelanguageemployedintheinstrumentorbeindispensabletocarrytheintentionofthepartiesintoeffect.Termsshouldbeimpliedina
contract,notbecausetheyarereasonable,butbecausetheyarenecessarilyinvolvedinthecontractualrelationshipsothatthepartiesmusthaveintended

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themandhaveonlyfailedtoexpressthembecauseofsheerinadvertenceorbecausetheyaretooobvioustoneedexpression.Noimpliedobligationcanexist
underacontractuponapointwhichapparentlyshowsthatitwasnotinthemindsoftheparties.
Itisonlywheretheexpressedcontractissilentonaparticularpointthatanimpliedobligationinsuchrespectcanarise.Expressstipulationscannot,in
general,besetasideorvariedbyimpliedpromises.Insuchcasesthemaxim"expressiouniusestexclusionalterius"applieswhichmeans,"expressmention
ofonethingimpliestheexclusionoftheothers".
Impliedtermscanfurtherbecategorizedundertwoheadings:
1.Termsimpliedinfact.
2.Termsimpliedinlaw.
Tounderstandthesetwocategorieswemustfirstseetheirhistoricalevolution.
HistoricalEvolutionofImpliedTerms:
PriortotheHouseofLordsdecisioninLiverpoolCityCouncilvIrwincase,theconceptoftheimpliedtermwasbutsparinglyutilized.Atthattimeimpliedterms
wereusedonlyincasesofnecessity.IntheLiverpoolCityCouncilcaseanewdimensionwasbroughtin.itcreatedanewcategoryofimpliedtermsaltogether
whichwasnotbasedupontheestablishedcriterionofnecessitybut,rather,uponthemuchbroaderrationaleofpublicpolicy.Thiswasaradicaldevelopment,
forreasonablenesscouldnowbeaccommodated,andthatthestrictrequirementofgivingeffectonlytothepresumedintentionofthepartiescouldnowbe
dispensedwithwhereitconflictedwithsuchbroaderpublicpolicyconsiderations.Termsimpliedinfactwastheoldercategoryandthetermsimpliedinlaware
thenewercategory.
TermsimpliedinFact
ImpliedtermsusedtofallintothiscategoryonlybeforetheLiverpoolCityCouncilcase.Inthiscategorytermswereimpliedonlywhereitwasnecessaryto
giveeffecttothepresumedintentionofbothpartiestothecontract.Atthattimethetestofreasonablenesswasnotfollowedandthemainemphasisofthe
courtswasontheclassicalnotionoffreedomofcontract.
However,difficultiesarosewithregardtoascertainingwhetherimplicationoughttobeeffected.Twotestsarosefordecidingthis,namely
(a)Businessefficacytest.
(b)OfficiousBystandertest.
ThefirsttestwasformulatedinTheMoorockandthesecondtestwasformulatedbyMacKinnonL.J.inShirlawvSouthernFoundries.
TheBusinessEfficacyTest
Accordingtothistestatermwillbeimpliedifitisnecessary,inthebusinesssense,togiveefficacytothecontact.
ItwasBowenL.J.whohadlaiddownthistestinhisjudgmentasfollows,
"now,animpliedwarranty,or,asitiscalledacovenantinlaw,asdistinguishedfromanexpresscontractorexpresswarranty,reallyisinallcasesfoundedon
thepresumedintentionoftheparties,anduponreason.Theimplicationwhichthelawdrawsfromwhatmustobviouslyhavebeentheintentionoftheparties,
thelawdrawswiththeobjectofgivingefficacytothetransactionandpreventingsuchafailureofconsiderationascannothavebeenwithinthecontemplation
ofeithersideandIbelieveifoneweretotakeallthecase,andtheyaremany,ofimpliedwarrantiesorcovenantsinlaw,itwillbefoundthatinallofthemthe
lawisraisinganimplicationfromthepresumedintentionofthepartieswiththeobjectofgivingtothetransactionsuchefficacyasbothpartiesmusthave
intendedthatatalleventitshouldhave,inbusinesstransactionssuchasthis,whatthelawdesirestoeffectbytheimplicationistogivesuchbusiness
efficacytothetransactionsmusthavebeenintendedatalleventbybothpartieswhoarebusinessmennottoimposeononesideallthechanceoffailure,but
tomakeeachpartypromiseinlawasmuch,atalleventasitmusthavebeeninthecontemplationofbothpartiesthatheshouldberesponsibleforinrespect
ofthoseperilsorchance."
AscanbeseenfromthejudgmentthatthemainpurposeofBowen.L.Jwasthatagapinthecontractshouldnotunderminetheunderlyingbusinesspurpose
thepartiesoriginallyintended.Thus,thecentralideawasthatthecourtsshouldfulfillcontractualobligations.
TheninthecaseofHamlyn&Co.vWood&Co.wherebothLordEsherM.R.aswellasBowenL.Jhadoccasiontoconsideragainthetopicofimpliedterms
ingeneralandthe"businessefficacy"testenunciatedinTheMoorockasalreadystatedabove.Inthiscasethecourthadstatedthatithadnorighttoimplyin
awrittencontractanysuchstipulation,unless,onconsideringthetermofthecontactinareasonableandbusinessmanner,animplicationnecessarilyarises
thatthepartiesmusthaveintendedthatthesuggestedstipulationshouldexist.Thus,thiscasetooreiteratedwhathadbeenheldinTheMoorock.
TheOfficiousBystandertest
Thisistheothermaintestfor"termsimpliedinfact",andisencompassedwithinthefollowingwordfromthejudgmentofMacKinnonL.JinthecourtofAppeal
decisionofShirlawvSouthernFoundries,
"ifImayquotefromanessayIwrotesomeyearsago,Ithensaid:primafaciethatwhichinanycontractislefttobeimpliedandneednotbeexpressedis
somethingsoobviousthatitgoeswithoutsayingsothat,if,whilethepartiesweremakingtheirbargain,anofficiousbystanderweretosuggestsomeexpress
provisionforitintheiragreement,theywouldtestilysuppresshimwithacommon"oh,ofcourse!"
Obviousinferencefromagreement
Atermwhich,hasnotbeenexpressedmayalsobeimpliedifitwassoobviouslyastipulationintheagreementthatthepartiesmusthaveintendediftoform
partoftheircontract.Atermwillnot,however,thusbeimpliedunlessthecourtissatisfiedthatbothpartieswouldasreasonablemen,haveagreedtoithadit
beensuggestedtothem.Theknowledgeorignoranceofeachpartyofthemattertobeimplied,orofthefactsonwhichtheimplicationisbasedisthereforea
relevantfactor.Further,since"thegeneralpresumptionisthatthepartieshaveexpressedeverymaterialtermwhichtheyintendedshouldgoverntheircontract,
whetheroralorinwriting,the'courtwillonlyimplyatermifitisonewhichmustnecessarilyhavebeenintendedbythem,andinparticularwillbereluctantto

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makeanyimplication"wherethepartieshaveenteredintoacarefullydrafted,writtencontractcontainingdetailedtermsagreedbetweenthem".
RelationshipBetweenthetests
Ifwecomparethetwotestsitcanbesaidthattheofficiousbystandertestismorespecificthanthebusinessefficacytestwhichisclassifiedas
encompassing"generalities".Thebusinessefficacytestisthemoregeneralstatementofprinciplewhichthusservesasthebasictheoreticalguideline.The
'officiousbystander'testontheotherhandprovidesthepracticalmodeforaffectingthegeneralprinciple'.Thereisreallynodifferencebetweenthe"business
efficacy"testontheonehandandthe"officiousbystander"testontheother.However,onepointwhichwouldbeworthwhiletonotewouldbethatapartfrom
thebroaderproblemsrelatingtosubjectivity,thesetestsarebutbroadguidelinesatbest.Thetwotestsarenotonlycompatiblewitheachotherbutalsothat
theyaretobeintegratedintheprocessofpracticalapplicationwiththelatterprovidingthemorespecificorconcretecriterionofultimateapplication.
Thus,itcanbeseenthatearlierthemainfunctionofimpliedtermwastoprovideforafairresultinexceptionalcircumstancewheretheexpresstermofthe
contractcouldnot.Theideaoffreedomofcontracthadaverystrongbindingholdasthecourtdidnotgenerallyprefertogooutofthecontractualconsensus.It
werethesetwotestswhichhadbroadenedtheideaaswellastheapplicationofimpliedterm.Anotherpossibilityisthatboththesetestsreflectedthewaythe
judgesperceivedtheircapacitytounderstandtheworldviewofthelitigantsthemselves.
TermsImpliedinLaw
Theimplicationofatermisamatteroflawforthecourt,andwhetherornotatermisimpliedisusuallysaidtodependupontheintentionofthepartiesas
collectedfromthewordsoftheagreementandthesurroundingcircumstances.Inmanyclassesofcontract,however,impliedtermshavebecome
standardized,and,itissomewhatartificialtoattributesuchtermstotheunexpressedintentionoftheparties.Thecourtis,infact,layingdownageneralruleof
lawthat,inallcontractsofadefinedtypeforexample,saleofgoods,landlordandtenant,employment,thecarriageofgoodsbylandorseacertaintermswill
beimplied,unlesstheimplicationofsuchatermwouldbecontrary,totheexpresswordsoftheagreement.Suchimplicationsdonotdependontheintentions
oftheparties,actualorpresumed,butonmoregeneralconsiderations.
Eitherthe"businessefficacy"testor"officiousbystander"testwould,insuchacontextbeinappropriate,sincewiderconsiderations(presumably,ofpublic
policy)wouldapply.Thissecond(andbroadercategory)of"termsimpliedbylaw"onlyappliedwheretermsareimpliedasgenerallegalincidentsinall
contractsofaparticularcategory.
Thus,thebasicdifferencebetweentermsimpliedinfactandtermsimpliedinlawisthatthefirstisanarrowertestbasedoneitherthe'businessefficacy'
criterionor'officiousbystander'criterionfor'termsimpliedinfact'inordertogiveeffecttothepresumedintentionofthepartiesandsecondlyabroadertest
basedon'reasonableness'(havingregardtopublicpolicyconsiderations)forterms'impliedinlaw'.Wheretermscannotbeimpliedonthefirstandnarrower
basis,thelattercategoryoffersawiderscopeforsuchaimplication.
Whenatermoughtnottobeimplied?
Atermoughtnottobeimpliedunlessitisinallthecircumstancesreasonable,Butthisdoesnotmeanthatatermwillbeimpliedmerelybecauseinallthe
circumstancesitwouldbereasonabletodosoorbecauseitwouldimprovethecontractormakeitscarryingoutmoreconvenient.Thetouchstoneisalways
necessityandnotmerelyreasonableness.Thetermtobeimpliedmustalsobecapableofbeingformulatedwithsufficientclarityandprecision.Atermwillnot
beimpliedifitwouldbeinconsistentwiththeexpresswordingofthecontract.
Termswhenimpliedfromusageorcustom
Ifthereisaninvariable,certainandgeneralusageorcustomofanyparticulartradeorplace,thelawwillimply,onthepartofonewhocontractsoremploys
anothertocontractforhimuponamattertowhichsuchusageorcustomhasreferenceapromiseforthebenefitoftheotherpartyinconformitywithsuch
usageorcustomprovidedthereisnoinconsistencybetweentheusageandthetermsofthecontract.Tobebinding,however,theusagemustbecertainand
reasonableandnotcontrarytolawanditmustalsobesomethingmorethanameretradepractice.Butwhensuch,usageisprovedit,wil1formthebasisof
thecontractbetweenthepartiesTheseusagesareincorporatedonthepresumptionthatthepartiesdidnotmeantoexpressinwritingthewholeofthecontract
bywhichtheyintendedtobebound,butacontractwithreferencetothoseknownusages.
However,Acustomorusagecanonlybeincorporatedintoacontractifthereisnothingintheexpressornecessarilyimpliedtermsofthecontracttoprevent
suchinclusion,andItcanonlybeincorporatedifitisnotinconsistentwiththetenorofthecontractasawhole.
(ChapterIV)TheJhonstonecase
ThefactsofthiscasewereDrJohnstonetookhisemployinghospitaltocourtallegingthathisemploymentcontractbreachedthehospital'sdutytohimto
provideahealthyandsafeworkplace.Thedoctorwasworkingfrom40hoursMondaytoFridayandthenafurther48hoursonweekends.
Outcome:TheCourtrejectedtheHospital'sdefence.Ithadbeenarguedthat'ifyoucan'tstandtheheatgetoutofthekitchen.TheCourtinsteadstated:Itis
amatterofgraveconcernthatjuniordoctorsshouldberequiredtoworksuchlonghourswithoutproperrestthatnotonlytheirhealthmaybeputatriskbuttheir
patientsaswell.
ThiswasathreejudgebenchwithonejudgeLeggattL.J.dissentingfromthemajorityopinion.
Anexpresstermallowingtheemployertorequiretheemployeetowork88hourswasqualifiedbyatermimpliedonhealthgrounds.Thisobviouslyraisedthe
questionoftheinterrelationshipbetweenexpressandimpliedterms.
StuartSmithL.J.observedthatthedutywasimpliedbylaw,notjustaMoorcockimplication.Thecasemaythereforebeanoverridingdutycase,butanother
possibilityisthataspecificexpresstermcanbequalifiedbyanimpliedgeneralterm.
ExpressandImpliedTerms

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ThelinkbetweenexpressandimpliedtermswithinthesamecontractwasthemajorissueintheJohnstonecase.Whenfacedwithtwoconflictingterms,one
expressandtheotherimplied,StuartSmithL.Jchosetheonewhichappearedtohimcorrecton"principle"presumably,whetherthetermwhichprevailedwas
expressorimpliedwouldmakenodifference,regardbeinghadtothemeritsofthecase.Itsohappenedthatintheinstantcase,thetermwhichprevailedwas
implied.
Inresponsetothedefendantcounselsargumentthatanexpresstermmustprevailoveranimpliedterm,StuartSmithL.J.respondedthus:
"butthisisnotanimplicationthatarisesbecauseitisnecessarytogivebusinessefficacytothecontract[i.e.atermimpliedinfact]itarisesbyimplication
oflaw."
Thestatementjustquotedwouldseemtosuggestthatatermimpliedinlawcan"trump"evenanexpresstermofcontract,preciselybecauseofitsstatus.
Thiswould,inturn,appeartosuggestthatbecauseatermimpliedinlawispremisedonbroaderpublicpolicygrounds,itoughttosupersedeevena(contrary)
expresstermofthecontract.
Thus,thisiscontrarytotheconventionalprinciples.Inadditionthisparticularinterpretationhasputapremiumoncarefuldrafting.LeggattL.J.adoptedthe
moststraightforwardapproach,realizingtheincompatibilityoftheexpresstermontheonehandandthetermsoughttobeimpliedontheother,hegave
primacy(accordingtoconventionalprinciples)totheexpressterm,andthusdeliveredadissentingjudgmentandunlikeStuartL.JLeggattL.J.placedno
emphasisonwhetherornotatermwasimpliedinlaw.Quotinghiswords:
"althoughitisacanonofconstructionthatthetermsofacontractwillbeconstrued,asfaraspossible,soastobecompatiblewitheachother,itisaxiomatic
thatthescopeofanexpresstermcannotbecutdownbyanimpliedtermandtheitisatrueoftermimpliedbylawasitisoftermswhichdependonthe
intentionsoftheparties(i.etermsimpliedinfact)".ItisnowonderthattheJohnstonecasewasoverruledsubsequentlybytheQueensBench.Itwasheldthat
".certaintermswillbeimplied,unlesstheimplicationofsuchatermwouldbecontrarytotheexpresswordsoftheagreement."Thus,thepreviousposition
wasretainedbythecourt.
Thus,theJohnstonecaseisanexcellentexamplewhichshowsthedifficultieswhichthecourtfaceswhenitwantstodojusticeandthusgivesan
overzealousutilizationofimpliedtermstherebyoverridingtheexpresstermsitself.Whenthereisaconflictbetweenexpressandimpliedtermsitistheformer
whichshouldhaveanoverridingeffectasitwastheexpressintentionsofthepartiesthemselves.Animpliedtermontheotherhandisaproductofthecourts
interpretation.

(ChapterV)Conclusion
Thedoctrineofexpressandimpliedtermshaveevolvedalotthroughtheagesandhavenowattainedamuchmorebroaderandwiderencompassingposition.
Theconceptofexpressandimpliedtermsshowshowtheconventionaloutlooktowardscontractshavechanged,howthemainemphasiswasonfreedomof
contractbutslowlytherewasadeclineinthisconceptandtheconceptofimpliedtermsstartedhavingastrongerholdintheinterpretingprocess.Earlierthe
mainfunctionoftheimpliedtermwastoprovideforafairresultinexceptionalcircumstancewheretheexpresstermsofthecontractcouldnotandhowthe
courtshavestartedtakingamoreactiveroleinensuringjusticetothepartiesbypreventingonepartytotakeadvantageofanothereitherduetoomissions,
errorsorsuperiordraftingskills.Thedoctrineofimpliedtermsisoneofthemostflexible.However,theconceptofimpliedtermscanleadtoambiguity
especiallywhentherehasbeenanoverzealousutilizationofimpliedtermsashashappenedintheJohnstonecase.Casessuchastheseshowtheelementof
uncertaintywhichmayarisewhilepracticalapplicationofimpliedtermsisbeingdone.Thus,theconceptofimpliedtermsthoughgreatlybeneficialinnature
shouldbedevelopedcarefullyinasimpleandmethodicalmannersoastopreventunnecessaryconfusionandconstraint.
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