Your assignment is to prepare and submit a paper on terms of a contract. On some occasions the courts will read a term into the contract even though there has been no agreement. This could happen where the contract would not make sense if the term were not included.

Implied terms can be implied by statute or by the courts. The Sale of Goods Act 1979 demonstrates how implied terms are used in contract formation. S12 of this Act implies that the person selling the goods has a legal right to sell those goods. Similarly, s13 implies that the goods will correspond to the description of the goods have been advertised in a newspaper or catalog. There is an implied term regarding the satisfactory quality of the goods under s14. It was decided by the court in Benfield (t/a Autoroute Circuits) v Life Racing Ltd [2007]1 that there was no implied guarantee that a particular outcome would be achieved. The court also found that there was no evidence to prove that the defendant was relying on the plaintiff for such a guarantee.

Similarly, the Supply of Goods and Services Act 1982 also has terms that are implied in the contract. Within that Act, there is an implication that the services will be carried out with reasonable skill and care, within a reasonable time and for a reasonable price. In the past, the courts have allowed claims under this Act where the goods have been of unsatisfactory quality, where the order has been delivered late or where the price is deemed to be unreasonable.

In Walker Crisps Stockbrokers Ltd v Savill [2007]2 the court found that there had been a breach of an implied term of the contract that the broker would carry out his duties with reasonable skill and care. However in the case of Evans v Kosmar Villa Holiday Plc [2007]3 the court of appeal overturned the original ruling that there was an implied term that the holiday company would exercise reasonable skill and care in the provision of facilities and service at the&nbsp.holiday complex, including the swimming pool and its surrounds.