What are 'Implied Contract Terms'

Implied contract terms are items that a court will assume are intended to be included in a contract, even though they are not expressly stated. Businesspeople generally do not want to rely upon a court's interpretation of implied terms, so a good contract will often be very lengthy so that as many material items as possible are written into the contract. However, when it is not possible to cover every possible detail, a lawyer may appeal that such terms were implied in order to give force to the intent of the contract.

Explaining 'Implied Contract Terms'

Contract terms can be implied in a number of ways. For example, in many transactions involving the purchase of goods or services, there is an implied warranty of merchantability. That is, it is implied that what you are buying will serve the purpose that would be reasonably expected. This contract term is implied even when there is no written or oral contract. In other cases, contract terms may be implied where the intent of a contract obviously necessitates the inclusion of certain items. Even stating express terms to the contrary may not be sufficient to negate certain terms implied by the law.

Further Reading

The perceived strength of an implied contract: Can it withstand financial temptation?
www.sciencedirect.com [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

The implied market price of weather risk
www.tandfonline.com [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

The behavior of interest rates implied by the term structure of eurodollar futures
www.jstor.org [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

The limits of expanded choice: An analysis of the interactions between express and implied contract terms
heinonline.org [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

A theory of financing constraints and firm dynamics
academic.oup.com [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

The economic implication of project finance arrangements for BOO/BOT power projects in Asia
www.worldscientific.com [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …

The implication of using profit and loss sharing modes of finance in the banking system, with a particular reference to equity participation (partnership) method in …
www.emerald.com [PDF]
… Due to this gap in the literature, this study has provided a managerial implication of contract management for improved business outcomes … Analysis of management practices in performance-based outsourcing contracts … Real earnings management and Loan Contract terms …