Chapter 13 Self-test questions

. Which of the following tests was traditionally used to imply terms into contracts?

The 'officious bystander' test.

The 'business efficacy' test.

Both options (a) and (b) are correct.

None of the above.

. Which of the following statements best characterises the approach of Lord Hoffmann to implication of terms in AG of Belize v Belize Telecom Ltd?

Implication could be accommodated within a broad approach to interpretation.

Implication is completely separate from interpretation.

Implication has replaced interpretation as the main way to construct contracts.

The default position is that reasonable terms should be implied.

. Which of the following statements best characterises the approach of the courts to implication of terms after Marks & Spencer plc v BNP Paribas Securities Services Trust Co (Jersey) Ltd?

The courts will imply terms in all cases.

The courts will imply terms whenever it is reasonable to do so.

The courts will imply terms whenever it is necessary to do so.

The courts will never imply terms: interpretation must suffice.

. Why will the courts be open to implying customary terms, in relation to a particular trade or profession?

The court assumes it is implementing the intention of the parties.

The parties have signed a standard form in every case.

Implying such terms is always necessary to give business efficacy to the parties' contract.

The courts will not imply customary terms.

. How may the parties exclude the implication of a trade or professional custom to their agreement?

They may include an express term in the contract excluding the custom.

They may include a term in the contract which contradicts the customary term.

They may disprove the existence of the custom.

All of the above answers are correct.

. In which types of contract might there be implied terms in law?

All contracts have implied terms in law.

Contracts for the sale of goods.

Unusual and unique contracts.

Terms are never implied by law.

. How might parties exclude the application of the Sale of Goods Act 1979?

The Act applies only where parties explicitly allow for it in their contract.

The parties may never exclude the Act: all of its terms apply to all contracts for the sale of goods.

The parties may indicate in their agreement that the terms of the Act should not be implied.

The Act is only advisory, so is always excluded by law.

. To what extent will the courts take into account policy considerations when implying terms?

The courts are more willing to do so when considering implication in fact as opposed to implication in law.

The courts are more willing to do so when considering implication in law as opposed to implication in fact.

The courts are just as willing to do so when considering implication in law as they are for implication in fact.

The courts will not courts take into account policy considerations for any implied terms.

. When should a term in law be implied?

When it is reasonable to do so.

When it is necessary to do so.

Both of the options given are correct.

None of the options given is correct.

. When an implied term and an express term conflict, what is the result?

The implied term normally gives way to the express term.

The express term normally gives way to the implied term.

Both terms are incorporated.

Neither term is incorporated.

. Why was the result in Lynch v Thorne controversial?

It provides for the ordinary application of the rule that an express term which contradicts an implied term will prevail.

It meant that the builder was forced to break his contract.

The buyer could not reasonably be expected to suppose that the builder would not construct a house fit for his habitation.

It undermines the parties' freedom of contract by allowing the builder to go off-plan.

. Is a seller able to promise two things, one explicitly and the other impliedly, even though the two promises will be in conflict?

Yes.

No.

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