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What is Implied Terms? Definition

What is Implied Terms? Definition

Have you ever wondered what implied terms are in a contract? If so, you’re not alone. Many people don’t know what they are or how they can be used to their advantage. In this blog post, we will explore the definition of implied terms and how they can be used in a contract. We will also touch on some of the common misunderstandings about implied terms so that you can be better informed when entering into a contract.

What are Implied Terms?

Implied terms are those that are not expressly written into a contract but which are assumed to be part of the agreement. They can be implied by law or by the parties themselves. For example, there is an implied term of good faith in every contract, which means that each party must deal with the other fairly and in a way that is reasonable.

The Different Types of Implied Terms

There are four different types of implied terms: contractual, custom and practice, statutory and common law.

– Contractual terms are those that are specifically mentioned in the contract between two parties.
– Custom and practice terms are those that have developed over time between two parties through their repeated interactions with each other.
– Statutory terms are those imposed by law and are binding on all parties to a contract.
– Common law terms are those that have been established by court rulings and precedent.

Pros and Cons of Implied Terms

When it comes to business contracts, there are two types of terms: express and implied. Express terms are those that are explicitly stated in the contract, while implied terms are those that are not expressly stated but are nonetheless binding on the parties.

There are pros and cons to both express and implied terms. On the one hand, express terms provide certainty as to what the parties have agreed to. This can be helpful in preventing misunderstandings down the road. On the other hand, implied terms may be more flexible and allow for a greater degree of interpretation by the courts.

So, which is better? It really depends on the situation. In some cases, express terms may be preferable. In others, implied terms may work better. Ultimately, it is up to the parties to decide what type of terms they want to include in their contract.

What to Consider When Using Implied Terms

When it comes to using implied terms, there are a few things you need to keep in mind. First, you need to make sure that the term is actually implied. This can be difficult to do if you’re not familiar with the law or if the situation is complex. Second, you need to make sure that the term is fair and reasonable. If it’s not, then it’s not likely to be enforced by a court. Finally, you need to make sure that the term doesn’t contradict any express terms in the contract. If it does, then the express terms will take precedence over the implied term.

How to Draft Implied Terms

When it comes to contracts, there are certain terms that are implied by law. These terms are not expressly stated in the contract, but they are still binding on both parties. As a result, it is important to be aware of these implied terms when drafting a contract.

Here are some tips on how to draft implied terms:

1. Make sure that the express terms of the contract are clear and unambiguous. This will help to prevent any misunderstandings between the parties as to what is included in the contract.

2. Be aware of the types of implied terms that may be applicable to your contract. These includeterms relating to fitness for purpose, satisfaction of quality, and merchantability.

3. Consider whether any of these implied terms should be expressly stated in the contract. In some cases, it may be helpful to do this in order to avoid any disputes later on.

4. If you do include an implied term in the contract, make sure that it is clear and concise. This will help to ensure that both parties understand its implications.


Implied terms are an important part of English contract law. They help to fill in the gaps where the express terms of a contract do not cover a particular issue. In some cases, they may even override the express terms of a contract. If you are entering into a contract, it is important to be aware of the implied terms that may apply to your agreement.