Legal dictionary
Implied term
A contract term created by law (case law and statutes) as opposed to an express term that is created by the parties to a contract.
An implied term can be ascertained by reference to a five-stage test. It must be:
- reasonable and equitable,
- necessary for the business efficacy of the contract,
- so obvious that it goes without saying,
- capable of clear expression, and
- must not contradict an express term.
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