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* * Chapter 13: terms of contract –Implied terms 3. implied Terms imposed by law some statutes impose specific implied terms into certain contracts. eg. TPA(Trade Practice Act ) implies that in all contracts for the sale of goods, the seller’s statements of the goods must be reasonably relied on unless the buyer does not rely on it. See Dick Bentley Productions v Harold Smith Motors (1965) * * Chapter 13: terms of contract –Dick Bentley Productions Ltd v Harold Smith (Motors)Ltd (1956) 2 All ER 65 Facts: during negotiations for purchase of Bentley (vehicle) ,seller told buyer that car had new engine and gearbox…driven only 20 ,000 kms. The Statement was untrue (car had in fact travelled 161,000 kms ). buyer sued for breach of contract Held: * * Chapter 13: terms of contract –Types of Terms Type 2: Conditions and warranties conditions = major (essential) terms of contract -breach of a condition = entitled to rescind (terminate) contract and claim damages warranty = minor (non essential) terms of contract, breach of warranty = entitled only to damages * * Chapter 13: terms of contract –Types of Terms whether term is condition or warranty depends on facts of each case Test of essentiality: does it go to the heart of the contract ? If yes, it is a term of condition. see Poussard v Spiers Pond (1876) 1QBD 410 * * Chapter 13: terms of contract Poussard v Spiers Bond (1876) Facts: Poussard was engaged to play a leading part in an opera from the start. She fell ill and was unable to take part until later in the season. The organiser then refused her services Issue: was Poussard’s failure to attend constituting a condition which entitled organiser to repudiate contract? Decision: * * Chapter 13: terms of contract –Express term /implied term/Conditions/warranties Express terms = could be either condition or warranty depending on their importance implied terms also could be either conditions or warranties * * Chapter 14: Termination of
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