Topic 5- Contract Terms
27/11/18
Express Terms: The terms the parties put in themselves, what they are agree to, identifies
the parties rights and obligations
Implied Terms: The law puts these in a contract, has to be there, are not the result of parties
expressed intentions
30/11/18
Implied Terms: Moorcock 1889
Owners of a riverside jetty contracted with ship owners to allow them to unload
there
Ship owner needs to land the ship on the riverbed, the ship got damaged due to the
bed being unsafe
Can’t unload if your ship is damaged, parties didn’t think of this in the agreement
The court said the owners of the ship had to take reasonable care that the bed was
safe
The objective test is used- “Officious Bystander”, term was obviously being missed
There are certain repairing obligations in landlord and tenant contracts
Liverpool City Council v Irwin 1976
The lifts kept getting vandalised and so the landlord has an obligation to take
reasonable care with fixing the issue, the House of Lords agreed with this
The Sale of Goods Act 1979
The goods need to be sold by the description given, cannot be different
The seller can be sued for breach of contract if the description isn’t followed
Consumer Rights Act 2015
Consumers have a right that the goods must be fit for purpose
Exemption Clause
Limited or excluded from liability, from certain types
E.g.: A computer manufacture is not liable for property damage of a computer (if it
blew up)
A company can limit the liability, e.g.: not responsible for problems over £250
The law will decide whether exemption clauses can be enforceable, just because you
have one doesn’t mean you can use it
27/11/18
Express Terms: The terms the parties put in themselves, what they are agree to, identifies
the parties rights and obligations
Implied Terms: The law puts these in a contract, has to be there, are not the result of parties
expressed intentions
30/11/18
Implied Terms: Moorcock 1889
Owners of a riverside jetty contracted with ship owners to allow them to unload
there
Ship owner needs to land the ship on the riverbed, the ship got damaged due to the
bed being unsafe
Can’t unload if your ship is damaged, parties didn’t think of this in the agreement
The court said the owners of the ship had to take reasonable care that the bed was
safe
The objective test is used- “Officious Bystander”, term was obviously being missed
There are certain repairing obligations in landlord and tenant contracts
Liverpool City Council v Irwin 1976
The lifts kept getting vandalised and so the landlord has an obligation to take
reasonable care with fixing the issue, the House of Lords agreed with this
The Sale of Goods Act 1979
The goods need to be sold by the description given, cannot be different
The seller can be sued for breach of contract if the description isn’t followed
Consumer Rights Act 2015
Consumers have a right that the goods must be fit for purpose
Exemption Clause
Limited or excluded from liability, from certain types
E.g.: A computer manufacture is not liable for property damage of a computer (if it
blew up)
A company can limit the liability, e.g.: not responsible for problems over £250
The law will decide whether exemption clauses can be enforceable, just because you
have one doesn’t mean you can use it
