Implied Terms in Contract Law: Master Your Knowledge with Interactive Quizzes

Question 1

Which of the following best explains the primary rationale for imposing statutory implied terms into certain contracts?

Accepted Answer

To ensure fairness and safeguard disadvantaged parties in contractual agreements.

Answer

To enhance contractual certainty and predictability.

Answer

To reduce the necessity for explicit agreement on all contractual aspects.

Question 2

The term 'merchantable quality' is implied in contracts for:

Accepted Answer

Sale of goods

Answer

Sale of services

Answer

Hire of goods

Answer

Loan of money

Question 3

Which of the following cases established the doctrine of implied terms in fact?

Accepted Answer

Mallinson v. Pilcher

Answer

Liverpool City Council v. Irwin

Answer

Hillas & Co. Ltd. v. Arcos Ltd.

Answer

Suisse Atlantique Société d'Armement Maritime S.A. v. N.V. Rotterdamsche Kolen Centrale

Question 4

When can a term be implied by custom?

Accepted Answer

When it is so well-established that it is reasonably presumed to be known by all parties

Answer

When it is specifically agreed upon by the parties in writing

Answer

When it is mandated by law

Answer

When it is essential to fulfill the parties' apparent intentions

Question 5

In which scenario would a term NOT be implied by usage?

Accepted Answer

When the usage contradicts an explicit term stated in the contract

Answer

When the usage is well-established within the relevant industry

Answer

When the usage is known to both parties

Answer

When the usage is considered unreasonable

Question 6

Which of the following cannot be implied into a contract?

Accepted Answer

By agreement of the parties

Answer

By statute

Answer

By custom

Answer

By usage of trade

Question 7

The implied term by the Sale of Goods Act 1979 requiring a seller to deliver goods that are of merchantable quality is considered a(n) _______ term.

Accepted Answer

Statutory

Answer

Conditional

Answer

Inconditional

Answer

Implied in fact

Question 8

Which of the following is NOT a criterion for implying a term in fact?

Accepted Answer

Public policy

Answer

Objective intention of the parties

Answer

Usual course of dealing

Answer

Nature of the contract

Question 9

The implied term that a lessee has the right to quiet enjoyment of the property is known as the _______ term.

Accepted Answer

Covenant of quiet enjoyment

Answer

Fitness for purpose

Answer

Warranty of authority

Answer

Implied warranty of title

Question 10

Which of the following is NOT generally an advantage of implied terms?

Accepted Answer

Overriding express terms

Answer

Protecting the weaker party

Answer

Providing certainty

Answer

Incorporating industry standards

Question 11

Which of the following methods can NOT be used to imply a term into a contract?

Accepted Answer

Implication by agreement

Answer

Implication by statute

Answer

Implication by custom

Answer

Implication by usage

Question 12

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

Accepted Answer

The custom must be inconsistent with the express terms of the contract

Answer

The custom must be certain and well-established

Answer

The custom must be reasonable

Answer

The custom must be accepted in a relevant industry or profession

Question 13

Which of the following factors is NOT considered when determining whether to imply a term in fact?

Accepted Answer

The parol evidence rule

Answer

The parties' intentions

Answer

The parties' previous dealings

Answer

The context of the contract

Question 14

Which of the following is NOT a purpose of implied terms?

Accepted Answer

To override the express terms of the contract

Answer

To protect the weaker party

Answer

To provide certainty in the contract

Answer

To give effect to the parties' intentions

Question 15

Which of the following is an example of a term implied by usage?

Accepted Answer

A buyer will have a reasonable opportunity to inspect goods before purchasing them

Answer

A seller will deliver goods in a merchantable condition

Answer

A landlord will maintain the property in a habitable condition

Answer

An employee will not disclose confidential information

Question 16

Which of the following is NOT an argument in favor of implying terms into contracts?

Accepted Answer

It always leads to increased litigation

Answer

It can promote fairness and justice

Answer

It can reduce uncertainty

Answer

It can protect vulnerable parties

Question 17

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

Accepted Answer

Public policy

Answer

Custom

Answer

Statute

Answer

Course of dealing

Question 18

The term implied by law in English contract law that requires both parties to cooperate in the performance of the contract is known as the:

Accepted Answer

Duty of good faith

Answer

Term of fitness for purpose

Answer

Warranty of authority

Answer

Term of merchantability

Question 19

In a contract for the sale of goods under the Sale of Goods Act 1979, an implied term that the goods will be of satisfactory quality is known as the:

Accepted Answer

Term of merchantability

Answer

Term of fitness for purpose

Answer

Warranty of authority

Question 20

The implied term in English contract law that requires a party to disclose any material facts that may affect the other party's decision to enter into the contract is known as the:

Accepted Answer

Duty of disclosure

Answer

Term of fitness for purpose

Answer

Term of merchantability

Answer

Duty of care

Question 21

Which of the following is a distinguishing characteristic of an implied-in-fact term?

Accepted Answer

It is inferred from the specific circumstances of the contract.

Answer

It is implied by law.

Answer

It is contained in a written document.

Question 22

Which of the following is NOT a recognized type of implied term in English Contract Law?

Accepted Answer

Terms implied by the parties' negotiation history

Answer

Terms implied by custom and usage

Answer

Terms implied by the courts

Answer

Terms implied by statute

Question 23

The Sale of Goods Act 1979 implies a term that goods sold by a business must be of satisfactory quality. This is an example of which type of implied term?

Accepted Answer

Terms implied by statute

Answer

Terms implied by custom and usage

Answer

Terms implied by the courts

Answer

Terms implied in fact

Question 24

What is the key factor for the courts to imply a term into a contract based on custom and usage?

Accepted Answer

The custom or usage must be so well-established and notorious that it is presumed to be known by the parties or their agents involved in the specific trade or industry.

Answer

The custom or usage must be written down in a formal document.

Answer

The custom or usage must be followed by all businesses in the relevant industry.

Question 25

In which scenario would the 'officious bystander' test be most relevant?

Accepted Answer

Determining if a term should be implied in fact

Answer

Determining if a term should be implied by custom and usage

Answer

Determining if a term should be implied by statute

Answer

Determining if a term should be implied by the courts

Question 26

What is the purpose of the 'business efficacy' test?

Accepted Answer

To ensure that the contract makes commercial sense and is capable of being carried out effectively.

Answer

To prevent implied terms from being used to vary the express terms of the contract

Answer

To protect consumers from unfair terms

Answer

To uphold the principle of freedom of contract

Question 27

A contract for the sale of a specialized piece of equipment specifies that the seller will provide training to the buyer's employees. However, the contract is silent on the duration of the training. Could a term be implied as to the duration of the training?

Accepted Answer

Yes, a term of reasonable duration could be implied in fact, as it is necessary for the buyer to be able to use the equipment effectively.

Answer

Yes, a term of one month's training could be implied, as this is the industry standard.

Answer

No, the contract is clear that no training is to be provided, so a term cannot be implied.

Question 28

Which of the following is NOT a factor that courts consider when deciding whether to imply a term into a contract?

Accepted Answer

The parties' subjective intentions

Answer

The 'business efficacy' test

Answer

The commercial context of the contract

Answer

The reasonable expectations of the parties

Question 29

What is the effect of an implied term in a contract?

Accepted Answer

It has the same legal force and effect as an express term.

Answer

It creates a presumption that the parties agreed to the term, but this presumption can be rebutted.

Answer

It is only enforceable if it is in writing.

Answer

It is merely a suggestion and can be disregarded by the parties