Implied Terms in a Contract

Every contract has some terms and conditions that need to be followed whether it is expressed or implied and non-performance of any such terms may lead to breach of contract.

What is a contract?

A contract, as defined under Section 2(h) of the Indian Contract Act, 1872, which states that a legal agreement is considered to be a contract. To understand this line, it is helpful to break it down into its two parts −

• The legal agreement and

• What constitutes an agreement.

It means, the agreement that parties made must be legal in nature; it should not be made regarding any illegal object (which is prohibited in the state like weapons, drugs, etc.) and it must be possible act. For example, if someone makes an agreement to bring an iPhone from the United States in 10 hours; in this case, it is not a legal agreement, as in the given circumstance, it is simply impossible to travel from the United States to India in 10 hours.

Section 2(e) of the Indian Contract Act further states that "every promise and every group of promises, forming the consideration for each other, is an agreement," and Section 10 specifies what is enforceable by law.

All agreements are legally binding if they are made with the voluntary assent of the parties involved, have a legal consideration and a legal purpose, and are not specifically stated to be void.

A contract can be carried out in one of two ways, and they are as follows −

• Express Agreement

• Implied Agreement

Analysis of the Implied Terms in a Contract

Section 9 of the Indian Contract Act, 1872, provides a definition for both of these types of agreements. It states −

"A promise is deemed express if it is proposed or accepted in writing." The promise is considered to be implied insofar as such a proposition or acceptance is made in a manner other than in words.

The court will rule that this is an implied contract, or a contract that is conducted by an act, in the following scenario: A, a person, is playing in the ground when he suddenly suffers a cardiac arrest and falls down; B, another person who is also a doctor, comes to him and provides immediate treatment to save him; the next day, B went to A's house and demanded his fees; thus, A cannot refuse to pay his fees; instead, the court will rule that this is an emergency situation.

So, when A requests a haircut, he enters into a contract. This contract is fulfilled by the performance of an act. Even if they are not specifically mentioned, a court will consider implied contract terms to be part of a contract. Here, based on the observations made above, we can draw the conclusion that an implied contract exists between the parties and is non-verbal and unwritten.

Furthermore, if we talk about implied terms in a contract, then implied terms happen because every contract has some uncertainty, such as when someone buys a product and it is assumed that the product is free from flaws. This is just an example of how their specifications, such as quality, quantity, measurement, weight, and price, apply in this situation.

In essence, all contracts are unfinished; none of them completely address all potential future circumstances that might happen and those that would be relevant to that contract. Parties occasionally comply with all contract terms and conditions, but it is impossible to cover all conceivable subtleties.

This raises the question of whether there are any implied terms in a contract that the parties did not expressly agree to when they entered into the agreement. So, how did they get into a contract. Therefore, the answer to this question is that implied terms in a contract are a type of compulsion. For example, if a buyer expects a product to be free of general defects, implied terms in a contract term obligate the seller to disclose to the party any frequent mechanical issues with that product.

Conclusion

If a proposal or acceptance is made in writing, verbally, or orally with gestures, it is referred to as an "expressed contract." If it is made in any other way than by a written or verbally expressed word, such as by any activity, it is referred to as an "implicit contract." Unwritten and nonverbal, an implied contract is established by the conduct of the parties. When parties engage in a contract, they do not expressly agree to any implied terms.

Implied contracts can be fulfilled in three ways: one by the fact, another by the fact, and a third by custom or practice of trade. An express term of a contract will always take precedence over an implied term. According to Article 299 of the Indian Constitution, no government body may enter into an implied contract; instead, it must be in writing or express. There are many elements that are inherent in contracts, so they typically do not require the expression of such words.

Frequently Asked Questions

Q1. What sort of agreement is implied by law?

Ans. An implied contract is made, for instance, if a customer visits a restaurant and places an order for food. The consumer is compelled to pay the prices mentioned on the menu for the meal, and the restaurant owner is obligated to serve it. The prior actions of the parties concerned may also result in the creation of an implied-in-fact contract.

Q2. What are some examples of implied terms?

Ans. An implied provision, such as employees not stealing from their employer, may apply if there is no explicit agreement between you and your employer regarding a certain issue. ensuring a secure and safe working environment on the part of your employer.