By admin 
Implied terms are a fundamental aspect of contract law, which refers to the provisions that aren’t expressly stated in a contract but are understood to exist due to the nature of the agreement. These terms can be implied by fact, law, or custom and practice.
Implied terms by fact are those that are not explicitly mentioned in the contract but are considered so obvious that they do not need to be stated. For instance, if you hire someone to paint your house, it is an implied term that they will use paint and not some other substance. The court determines these implied terms based on what a reasonable person would expect under similar circumstances.
On the other hand, implied terms by law refer to conditions or stipulations that legislation automatically includes in certain types of contracts unless expressly excluded by parties involved. For example, employment contracts have several statutory rights such as minimum wage and holiday entitlements which cannot be contracted out of regardless of what is written in the employment agreement.
Lastly, there are implied terms through custom and practice. These relate to long-standing traditions or practices within a particular industry or between specific contracting parties. If these customs or practices have been consistently followed over time without objection from either party, they may become part of their contractual obligations even if not explicitly documented.
However important it might seem for all possible contingencies to be covered when drafting contracts; it’s practically impossible given how unpredictable business activities can get at times. This is where implied terms play their crucial role – filling gaps left open unintentionally during contract formulation phase ensuring fairness prevails between parties involved.
Courts take into account several factors while determining whether an unspoken term should be read into a contract as an implied term. These include intentions of both parties at time when agreement was made; whether implication was necessary for giving business efficacy; surrounding circumstances; reasonableness etcetera.
One must remember though – courts don’t just imply any term into contracts on whim rather they take a very cautious approach. The reason being, it’s not their job to rewrite agreements but rather interpret them in line with parties’ original intentions.
While implied terms are beneficial in ensuring fairness and filling gaps in contracts, they can also be a source of dispute. Therefore, it is always advisable for contracting parties to clearly express their intentions and cover all essential aspects when drafting a contract. This will reduce the ambiguity and potential for disputes over implied terms.
In conclusion, implied terms form an integral part of contract law that helps ensure justice between contracting parties by bridging any gaps left open during the drafting process. However, explicit clarity in contractual obligations remains the best practice to mitigate any potential disputes.