These are terms which though not agreed to by the parties, are an integral part of the contract.
Theses terms may be implied by statutes or by a court of law.
Terms implied By Statutes
Certain statutes imply terms in contracts entered into pursuant to their provisions. These terms become part of the contract. Terms implied in Sale of Goods contracts by the Sale of Goods Act The Sale of Goods Act implies both conditions and warranties in contracts of Sale of goods unless a different intention appears.
- Right to sell
Under Section 4 (a) of the Act there is an implied condition that the seller of goods shall have the right to sell when property in the goods is to pass.
- Correspond to description
In a sale by description there is an implied condition that the goods shall correspond to the description.
- Fitness for purpose
where the buyer expressly or by implication makes known to the seller the particular purpose for which the goods are required so as to rely on the sellers skill and judgement, there is an implied condition that the goods shall be reasonably fit for that purpose.
- Merchantable Quality
Where goods are bought by description from a person who deals in such goods in the ordinary course of business whether a seller or manufacturer, there is an implied condition that the goods will be of merchantable quality.
- Sale by Sample
In a sale by sample, the following conditions are implied:
1. The bulk shall correspond with the sample in quality.
2. The buyer shall be afforded a reasonable opportunity to compare the bulk with the sample.
3. That the goods shall be free from any defects rendering them unmerchantable.