Terms In Contract Essay

Analyze terms in contracts with reference to their meanings and effect.

The terms of a contract are important statements that describe the obligations and rights of all parties of the agreement. The terms are all matters agreed for example, how the deal will be done, what is the deal, and under what circumstances the deal will be made.

Express contract

An express contract has completely clear and concise terms. It does not matter if it is written or oral, but it leaves no room for interpretation. Only the pre-arranged terms matters and the actions of the parties have no effect on the validity of contract. A parole contract is one example of an express contract. A parole contract requires neither under seal nor record of the contract.

It is common for people to go into implied contracts everyday, without even their knowledge. When a person purchases something on their credit card, they have entered into an implied contract with the credit card company. There is no need for assurance for an implied contract between a credit card company and a company as it is common knowledge that the company provides credit for the customer’s purchase and the customer has to return the money.

Entering into a service also means entering into an implied contract. For example, hiring a catering service. It is already implied that the caterer would want to be paid after the deliverance of the food. Implied contracts have a remedy created by courts called the quasi-contract or implied-in-law contracts. This contract is not an actual contract but a legal substitute formed to have equity between all the parties during the implied contract. The courts use this to avoid injustice during an obligation upon a non-contracting party.

There are two main types of terms implied.

1. Terms implied by statue: The Sale of Goods Act 1979’s key