Lecture on Contracts: Conditions and Implied Terms

Understanding Contracts

• Definition: A contract is a legal obligation, not just the written document.
• Components:
  • Express Terms:
    • These are explicitly stated, can be written or oral.
  • Implied Terms:
    • Implied in Fact: Terms derived from the factual situation and intentions of the parties.
    • Implied in Law: Terms mandated by law regardless of the parties' intentions (e.g., obligation of good faith).

Focus of the Module

• Exploration of implied terms: their origins and how they arise.

Introduction to Conditions

• Definition: Specific kinds of terms in a contract that can be express or implied.
• Analogy: Similar to 'if-then' statements in programming.

Express Conditions

• Characteristics:
  • Strict Construction: Enforced even if results appear unfair.
  • Waiver: Parties can choose not to enforce conditions.
  • Disproportionate Forfeiture: Avoids enforcement if cost is excessively high or unjust.

Implied Conditions

• Nature: Function like other implied terms but are conditional.
• Example: Payment required before delivery of goods.
• Enforcement: Prove existence via industry custom or past practice.

Conclusion

• The unit will address conditions and implied terms extensively.
• Importance of understanding these concepts in contract law.