Terms of Contract

2 Types of the terms

There are two broad categories of terms

  1. Expressed terms
  2. Implied terms
    1. Implied by custom
    2. Implied by statute
    3. Implied by courts

2.1 Expressed terms

The terms that are expressed or stated clearly by the parties to a contract called expressed terms.

An expressed term if not fulfilled the innocent party may bring an action for breach of contract.

Case law: Scammell  v Ouston 

2.2 Implied terms

These are the hidden terms and obvious terms.

Implied terms are imposed by the court or statute.

2.2.1 Terms implied by statute

Terms those are imposed by statute (law) under specific circumstances.


Sale of Goods Act 1979.

According to this act, it is imposed by statute that goods must be of satisfactory quality.

2.2.2 Terms implied by courts

Some terms are generally included at the order of courts.

Case law: The Moorcock 1889

2.2.3 Implied by custom

Some terms are generally known to be included in contracts in a particular trade or locality.

Case law: Hutton v warren 1836