LAWS104 Lecture 6: LAWS104 Lecture 6 (Week 6) [Implied Terms; Construction of Terms; Exclusion Clauses]
9 May 2018
School
Course
Professor
LAWS104 Lecture
Week 6 [Implied Terms; Construction of Terms; Exclusion Clauses]
Implied Terms
- Implication of terms on the facts of the case – formal, written contracts
o BP Refinery v Shire of Hastings (1977) 180 CLR 266
▪ Implied term must be reasonable and equitable
▪ Implied term must be necessary to give business efficacy to the
contract
▪ Iplied ter ust be so obious it goes ithout sayig
▪ Implied term must be capable of clear expression
▪ Implied term must not be inconsistent with express terms
o Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR
337
o Attorney General of Belize v Belize Telecom Ltd [2009] 2 All ER 1127
o Mediterranean Salvage & Towage Ltd v Seamar Trading & Commerce [2009]
EWCA Civ 531
o Crema v Cenkos Securities [2010] EWCA Civ 1444
o The Moorcock (1889) 14 PD 64
- Implication of terms on the facts of the case – informal, unwritten contracts
o Hawkins v Clayton (1988) 164 CLR 539
o Byrne v Australian Airlines Ltd (1995) 185 CLR 410
- Implication of terms by law
o Statute
▪ Sale of Gods Acts
▪ Australian Consumer Law
o Common law
▪ Employment duties; implied term of cooperation
▪ Butts ODyer CL‘
- Implication of terms by custom and usage
o Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance
(1986) 160 CLR 226
- Iplied ters of good faith
o Royal Botanic Gardens & Domain Trust v South Sydney Council (2002) 186
ALR 289
▪ What does the implied duty of good faith mean?
▪ To what types of contracts will it apply?
▪ Could such an implied term be expressly excluded?
Construction of Terms
- General principles of construction
o Meaning is subject to an objective test
o Presumption parties did not intend an unreasonable result
o Courts will avoid finding inconsistencies in a contract
o Presumption in favour of business common sense
o Presumption parties intended technical use of words
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Week 6 [implied terms; construction of terms; exclusion clauses] Implication of terms on the facts of the case formal, written contracts: bp refinery v shire of hastings (1977) 180 clr 266. Implied term must be necessary to give business efficacy to the contract. I(cid:373)plied ter(cid:373) (cid:373)ust be so ob(cid:448)ious it (cid:858)goes (cid:449)ithout sayi(cid:374)g(cid:859) Implied term must be capable of clear expression. Implied term must not be inconsistent with express terms: codelfa construction pty ltd v state rail authority of nsw (1982) 149 clr. 337: attorney general of belize v belize telecom ltd [2009] 2 all er 1127, mediterranean salvage & towage ltd v seamar trading & commerce [2009] Ewca civ 531: crema v cenkos securities [2010] ewca civ 1444, the moorcock (1889) 14 pd 64. Implication of terms on the facts of the case informal, unwritten contracts: hawkins v clayton (1988) 164 clr 539, byrne v australian airlines ltd (1995) 185 clr 410.
