News & Analysis as of

Implied Contract Terms

BCLP

Drafters beware! Court of Appeal on the significance of express terms

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Every so often the Court will reaffirm the primacy of express terms while re-stating the rule that implied terms can only be relied on to the extent they are (i) so obvious as to go without saying, or (ii) necessary to give...more

A&O Shearman

Driving a reasonable bargain: exclusion of statutorily implied term upheld

A&O Shearman on

The High Court has held that a provision in a hire purchase agreement excluding all terms implied by law was effective to exclude a statutorily implied term of satisfactory quality. It was also reasonable under the Unfair...more

Cooley LLP

Under the Cover of an Umbrella (Agreement)?

Cooley LLP on

Last summer, the High Court handed down its judgment in Mackie Motors (Brechin) Limited v. RCI Financial Services Limited, in a case that had far-reaching consequences – not only for automotive dealers across the UK, but also...more

Cooley LLP

Implied terms: Commercial Court defers to arbitral tribunal

Cooley LLP on

In Pan Ocean Co Ltd v Daelim Corporation[1], the Commercial Court upheld the implication of a term requiring the inspection of a vessel’s holds without delay into a charterparty (a contract for the hire of a ship). The Court...more

A&O Shearman

A harsh outcome does not an implied term make

A&O Shearman on

The sanctity of the parties’ agreement is preserved as the UK Supreme Court adopts a cautious approach to implied terms. It reiterates that no term may be implied into an agreement where the implied term contradicts its...more

A&O Shearman

Conditional fee arrangement didn’t have implied duty of good faith

A&O Shearman on

The question of whether a solicitor’s retainer with its client includes an implied duty of good faith is to be answered by reference to the usual rules governing implied terms. The Court of Appeal found the client was under...more

A&O Shearman

Court of Appeal says no implied term preventing Tesco’s “firing and rehiring” plan

A&O Shearman on

A reminder, if one is needed, of how difficult it can be to imply a term. The Court of Appeal found the High Court was wrong to have implied a term into an employment contract restraining the controversial practice of “firing...more

Dechert LLP

UK High Court reiterates principles for implied contractual terms

Dechert LLP on

A recent High Court case relating to a trade mark licensing and merchandising agreement offers a timely reminder of the principles a Court will consider when determining whether a term should be implied into a commercial...more

A&O Shearman

Box, box, box: implied term causes Force India to pit

A&O Shearman on

In Force India Formula One Team, the High Court held that a term which required Force India to own the Formula One team throughout a merchandising licence’s five year term should be implied since it was both obvious from the...more

A&O Shearman

Implied term? Don’t bet your bottom dollar

A&O Shearman on

An agreement between a customer and a spread betting provider did not include an implied obligation, when exercising a discretion to close on default, to exercise the discretion fairly and in the best interest of the...more

Wilson Sonsini Goodrich & Rosati

How to State “Account Stated”

Normally, parties become indebted to each other through an express contract. But you may become liable to pay a bill from a vendor simply because you failed to dispute that bill within a "reasonable" time. How? Through a...more

McGlinchey Stafford

Florida Real Property & Business Litigation Report, Volume 13, Issue 23

McGlinchey Stafford on

GE Energy Power Conversion France SAS, Corp. v. Outokumpu Stainless USA, LLC, Case No. 18–1048 (2020). Equitable estoppel principles (such as non-signatories being able to compel arbitration of disputes) can be applied in...more

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