Implied Terms in Contract Law: A Comprehensive Guide for LLB Students

Question 1

In which of the following scenarios would a term be implied by custom?

Accepted Answer

When a specific industry has a frequent pattern of entering into a particular type of contract.

Answer

When two parties have an established, long-term relationship.

Answer

When two parties have different nationalities.

Answer

When a contract is written in a foreign language.

Question 2

Which of the following is NOT a type of implied term?

Accepted Answer

Implied by necessity

Answer

Implied by statute

Answer

Implied by custom

Answer

Implied by usage

Question 3

Which of the following is NOT a potential consequence of breaching an implied term?

Accepted Answer

Specific performance

Answer

Damages

Answer

Rescission

Answer

Injunction

Question 4

Which of the following statutes implies a term into contracts for the sale of goods that the goods correspond with their description?

Accepted Answer

Sale of Goods Act 1979

Answer

Consumer Rights Act 2015

Answer

Unfair Contract Terms Act 1977

Answer

Law of Property Act 1925

Question 5

In which type of contract is a term typically implied that the employee will perform their duties with reasonable care and skill?

Accepted Answer

Employment contract

Answer

Sale of goods contract

Answer

Construction contract

Answer

Partnership agreement

Question 6

Which of the following is NOT a requirement for a term to be implied by custom?

Accepted Answer

The custom must be advantageous to the parties.

Answer

The custom must be well-established (notorious).

Answer

The custom must be reasonable.

Answer

The custom must be consistent with the terms of the contract.

Question 7

Which of the following is NOT a factor that a court may consider when deciding whether to imply a term?

Accepted Answer

The availability of alternative remedies

Answer

The parties' intentions

Answer

The purpose of the contract

Answer

The surrounding circumstances

Question 8

Which of the following is NOT a type of implied term in contract law?

Accepted Answer

Term implied by equity

Answer

Term implied by statute

Answer

Term implied by custom

Answer

Term implied by usage

Question 9

Which of the following is a key distinction between express terms and implied terms?

Accepted Answer

Express terms are explicitly stated in the contract, while implied terms are not.

Answer

Implied terms are more specific than express terms.

Answer

Express terms are more difficult to prove than implied terms.

Answer

Implied terms cannot be varied, while express terms can.

Question 10

Which of the following is NOT a potential benefit of implication of terms?

Accepted Answer

It can lead to unintended consequences.

Answer

It provides certainty and predictability to contracts.

Answer

It protects weaker parties.

Answer

It can be used to fill gaps in contracts.

Question 11

Which of the following are the requirements for a term to be implied into a contract by custom or usage?

Accepted Answer

It must be notorious, certain, and reasonable

Answer

It must be known to only one party to the contract

Answer

It must be in writing

Answer

It must be incorporated into the contract by express agreement

Question 12

What is the legal consequence of a party breaching an implied term within a contract?

Accepted Answer

It gives rise to an action for damages

Answer

It makes the contract void

Answer

It gives the innocent party the right to rescind the contract

Answer

It does not affect the validity of the contract

Question 13

Which of the following factors is irrelevant in determining whether a term should be implied into a contract?

Accepted Answer

Provision of a statutory remedy

Answer

The nature of the contract

Answer

The parties' intentions

Answer

The surrounding circumstances

Question 14

**Implied Terms in Fact**

How do implied terms in fact help determine the parties' intentions and complete the contract?

Accepted Answer

Implied terms in fact reflect the parties' presumed intentions, filling in gaps and supplementing the written agreement.

Answer

Implied terms in fact only apply when explicitly mentioned in an express term.

Answer

Implied terms in fact primarily protect the weaker party in a contract.

Question 15

Which of the following sets of principles are essential in determining whether a term can be implied into a contract?

Accepted Answer

Necessity, good faith, and reasonableness

Answer

Custom and usage only

Answer

Statutory authority alone

Answer

The parties' subjective intentions

Question 16

A term implied by law is implied:

Accepted Answer

By statute or other legislation

Answer

Based on the parties' presumed intention

Answer

Based on established custom or trade usage

Answer

By the courts

Question 17

When a term is implied in fact, it is implied:

Accepted Answer

To give effect to the presumed intention of the parties

Answer

Despite the express terms of the contract

Answer

To protect the weaker party to the contract

Answer

To ensure fairness and equity

Question 18

A term implied by usage is implied:

Accepted Answer

Based on the established practice or custom within a particular trade or industry

Answer

Based on the course of dealing between the parties

Answer

Based on the presumed intention of the parties

Answer

Based on statute

Question 19

Which of the following is NOT a limitation on the implied term of merchantability under the Sale of Goods Act 1979?

Accepted Answer

It does not apply to sales of food

Answer

It does not apply to sales of second-hand goods

Answer

It does not apply to sales of goods intended for a particular purpose and made known to the seller

Answer

It does not apply to sales of goods sold 'as is' or with defects that are clearly visible

Question 20

A term implied by statute is implied:

Accepted Answer

By law, typically through legislation or statutory regulations

Answer

By the courts

Answer

By custom or usage

Answer

By the parties to the contract

Question 21

Which of the following is NOT a consequence of breaching an implied term in a contract?

Accepted Answer

Specific performance of the contract

Answer

Damages

Answer

Rescission of the contract

Answer

Injunction to prevent further breach

Question 22

A term implied by the courts is implied:

Accepted Answer

To give effect to the overriding principles of contract law, such as good faith and fairness

Answer

Based on the parties' presumed intention

Answer

Based on established custom or trade usage

Answer

Based on statute or other legislation

Question 23

Which of the following is NOT a recognized method of implying terms into a contract?

Accepted Answer

By precedent

Answer

By statute

Answer

By custom

Answer

By usage

Question 24

The implied term of merchantable quality implies that:

Accepted Answer

The goods must be of satisfactory quality

Answer

The goods must be fit for the purpose intended

Answer

The goods must be free from defects

Answer

The goods must be delivered on time

Question 25

The implied term of reasonable care and skill requires that:

Accepted Answer

The party providing the service must exercise reasonable care and skill in performing the service

Answer

The party providing the service must have the necessary qualifications and experience

Answer

The party providing the service must use the latest technology

Answer

The party providing the service must guarantee the results of the service

Question 26

Which of the following is NOT a way to exclude or vary an implied term?

Accepted Answer

By statute

Answer

By express agreement

Answer

By course of dealing

Answer

By notice

Question 27

Which of the following is not a recognized method of implying terms into a contract?

Accepted Answer

By equity

Answer

By statute

Answer

By custom

Answer

By usage of trade

Question 28

In which case did the court imply a term into a contract for the sale of a house?

Accepted Answer

Liverpool City Council v Irwin

Answer

Byrne v Van Tienhoven

Answer

Hadley v Baxendale

Answer

Carlill v Carbolic Smoke Ball Company

Question 29

Which of the following is NOT a requirement for an implied term in fact?

Accepted Answer

It must be consistent with the express terms of the contract

Answer

It is not expressly agreed upon by the parties

Answer

It must be reasonable and necessary

Answer

It must be capable of clear expression

Question 30

How do implied terms enhance the completeness of contracts and potentially alter the distribution of rights and obligations between the parties?

Accepted Answer

Implied terms are essential for ensuring fairness and equity in contracts.

Answer

Implied terms play a limited role in contract completeness, as they are often overridden by express terms.

Answer

Implied terms cannot modify the balance of rights and obligations between the parties.

Answer

Implied terms are only applicable to incomplete or ambiguous contracts.

Question 31

Which of the following is NOT a type of implied term in contract law?

Accepted Answer

Express terms

Answer

Implied terms by statute

Answer

Implied terms by custom

Answer

Implied terms by usage

Question 32

Identify the option that is not a recognized type of implied term in contract law.

Accepted Answer

Expressed

Answer

Customary

Answer

Factual

Answer

Statutory

Question 33

In determining whether a term is implied in fact, which of the following factors is NOT taken into consideration?

Accepted Answer

Subjectivity of the parties' intentions

Answer

Surrounding circumstances

Answer

Usage of trade

Answer

Course of dealing

Question 34

According to the Sale of Goods Act 1979, a term is implied that:

Accepted Answer

The seller has the legal right to sell the goods

Answer

The seller is a merchant

Answer

The buyer has inspected the goods

Answer

The goods are new

Question 35

The implied term of fitness for a particular purpose arises when:

Accepted Answer

The buyer relies on the seller's expertise and judgment

Answer

The buyer inspects the goods before purchase

Answer

The goods are specifically described by the seller

Question 36

An example of a custom that can give rise to an implied term is:

Accepted Answer

Trading practices on a particular exchange

Answer

An agreement between specific parties

Answer

A statute

Answer

A judicial precedent

Question 37

The implied term of satisfactory quality indicates that goods must:

Accepted Answer

Meet the reasonable expectations of a buyer

Answer

Be completely free of any flaws

Answer

Last for an extended period

Answer

Be of the highest available quality

Question 38

Regarding the implied term of reasonable time in a contract, which statement is accurate?

Accepted Answer

It can be excluded by a specific agreement between the parties

Answer

It only applies to contracts for the sale of goods

Answer

It does not exist in English law

Answer

It is absolute and cannot be excluded

Question 39

Which of the following is NOT a source of implied terms in contract law?

Accepted Answer

Terms implied by the parties' negotiations

Answer

Terms implied by statute

Answer

Terms implied by custom and usage

Answer

Terms implied by the courts

Question 40

The Sale of Goods Act 1979 implies a term that goods sold by description must:

Accepted Answer

Correspond with the description

Answer

Be of satisfactory quality

Answer

Be free from defects

Answer

Be fit for a particular purpose

Question 41

A term implied by custom and usage is most likely to be found if:

Accepted Answer

The custom is notorious and certain within the relevant trade

Answer

The parties expressly agreed to the term

Answer

The custom is beneficial to one party only

Question 42

The 'officious bystander' test is used to determine whether a term should be implied:

Accepted Answer

In fact

Answer

By statute

Answer

By usage

Answer

By custom

Question 43

A contract for the sale of a used car is silent on the car's condition. Which implied term is most likely to apply?

Accepted Answer

Satisfactory quality

Answer

Fitness for a particular purpose

Answer

Title

Answer

Correspondence with description

Question 44

A homeowner hires a builder to construct an extension to their house. The builder fails to use the specified materials. What implied term has the builder likely breached?

Accepted Answer

Term implied by custom and usage

Answer

Term implied by statute

Answer

Term implied in fact

Answer

None of the above

Question 45

A term implied by statute can be excluded by the parties:

Accepted Answer

If the exclusion clause is clear and unambiguous

Answer

Only if the exclusion clause is in writing

Answer

Only if the parties expressly agree to the exclusion

Answer

Never

Question 46

The legal principle that prevents a party from relying on an implied term if it contradicts the express terms of the contract is known as:

Accepted Answer

The principle of consistency

Answer

The business efficacy test

Answer

The 'officious bystander' test

Answer

The 'reasonable man' test