Implied terms are provisions that are not expressly written in a contract but are considered part of the agreement by operation of law. The two primary sources for these terms are statute and common law.

Statute: Legislation, such as the Sale of Goods Act 1979 or the Supply of Goods and Services Act 1982, automatically implies certain terms into contracts to ensure a minimum level of protection (e.g., goods must be of satisfactory quality and fit for purpose).

Legal Precedence (Common Law): Courts may imply terms based on established legal principles from previous cases. This can be to give the contract 'business efficacy' (i.e., to make it work as the parties intended) or because the term is customary in a particular trade.

B. Definition & interpretation: This is an express clause within a contract that clarifies the meaning of terms used.

C. Contract appendix: This is a supplementary document attached to a contract, forming part of the express written agreement.

E. Contract clause: This is a specific, written provision within the contract, making it an express term by definition.

1. Chartered Institute of Procurement & Supply. (2018). Commercial Contracting (L4M3). CIPS Publications. In the section covering the contents of a contract

the guide distinguishes between express terms and implied terms

identifying the main sources of implied terms as statute (e.g.

Sale of Goods Act 1979) and common law (terms implied by the courts based on precedent or custom). (Note: Specific page numbers vary by edition

but this is a core concept in the module's section on contract terms).

2. McKendrick

E. (2020). Contract Law: Text

Cases

and Materials (9th ed.). Oxford University Press. Chapter 9

"What are the terms of the contract?"

section 3

"Implied Terms

" details the two principal ways terms are implied: by the courts (common law/precedent) and by statute.

3. The Sale of Goods Act 1979 (as amended). c. 54. United Kingdom. Part II

Section 14

"Implied terms about quality or fitness

" is a direct example of a statute implying terms into a contract for the sale of goods. Available at: https://www.legislation.gov.uk/ukpga/1979/54/section/14