- Discuss how terms implied into certain contracts by custom, especially
within a trade, as in a ‘course of dealing’, or in a geographical area. - Discuss how terms are implied by statute, especially in consumer
contracts, e.g. Sale of Goods Act 1979 (as amended) sections 12 to 15. - Discuss how terms are implied by the courts on the facts – Samuels v
Davis; or via the officious bystander test – Shirlaw v Southern
Foundries, Spring v National Amalgamated Stevedores and Dockers
Society, Trollope and Colls Ltd v North West Regional Hospital Board;
or to give business efficacy to an agreement – The Moorcock (1889),
Liverpool City Council v Irwin. - Consider whether the approach taken by the law is satisfactory in
producing the contract intended by the parties.
Question 3- Introduce the idea of parties being bound by what they intended, but
consider the need for external evidence of that intention. - Explain the starting-point of a person being bound by what they ‘see
and sign’ – use the rule in L’Estrange v Graucob and the parol evidence
rule in Goss v Lord Nugent. - Consider the ways in which terms may be incorporated, despite the two
rules above (see material for Question 2 above). - Relate this back to the quotation in the Question and conclude as to
how far it is true.
Question 4- Explain the general principles of terms being incorporated into
contracts by the parties or the courts, and implied into the contract by
statute, and explain the consequences of breach of these terms. - Explain the common law principles on which terms will be implied into
a contract and then explain the statutory provision regarding implied
terms in consumer contracts found in the Sale of Goods Act 1979
sections 12 to 15 and the amendments found in the Sale and Supply of
Goods Act 1994. - Explain that Alex may need to rely on both the common law, regarding
the motor cycle, and statute regarding the camera, and explain the
difference in provision for a person purchasing in the capacity of
consumer and a purchaser in a private sale. - Apply the statutory provisions of the Sale of Goods Act 1979 and the
Sale and Supply of Goods Act 1994 to the purchase of the camera and
apply the common law to the purchase of the motor cycle. - Consider whether the law in this area is satisfactory for those concerned.
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