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What are generic terms in the context of business contracts?
What are generic terms in the context of business contracts?
- Terms that apply to all contracts without exception.
- Terms implied into particular classes or categories of contracts. (correct)
- Terms that only apply to contracts involving goods.
- Terms that must be expressly stated in all contracts.
Which of the following is an example of a contract that may contain implied generic terms?
Which of the following is an example of a contract that may contain implied generic terms?
- A lease agreement. (correct)
- An informal handshake contract.
- A casual agreement between friends.
- A verbal promise to return a favor.
In which case was it determined that there is no implied term requiring a doctor to act in the best interests of the patient?
In which case was it determined that there is no implied term requiring a doctor to act in the best interests of the patient?
- Taylor v Edwards
- Smith v Howard
- Breen v Williams (correct)
- Jones v Brown
What condition must be met for a term to be implied by common law into a contract?
What condition must be met for a term to be implied by common law into a contract?
What does the Goods Act 1958 (Vic) do regarding contracts of sale?
What does the Goods Act 1958 (Vic) do regarding contracts of sale?
What was the primary issue in the Breen v Williams case?
What was the primary issue in the Breen v Williams case?
Which of the following best describes the outcome of Breen v Williams?
Which of the following best describes the outcome of Breen v Williams?
What role do statutory laws play in the context of implied terms in contracts?
What role do statutory laws play in the context of implied terms in contracts?
What is an implied condition when goods are sold by description according to s 18 of the Goods Act?
What is an implied condition when goods are sold by description according to s 18 of the Goods Act?
In the case of Varley v Whipp, what was the breach related to?
In the case of Varley v Whipp, what was the breach related to?
What is implied when goods are bought by description and the seller deals in such goods, as per s 19(b)?
What is implied when goods are bought by description and the seller deals in such goods, as per s 19(b)?
What defines 'merchantable quality' according to the content?
What defines 'merchantable quality' according to the content?
Which buyer action can negate the implied term of merchantable quality under s 19(b)?
Which buyer action can negate the implied term of merchantable quality under s 19(b)?
What was the primary legal issue in the Australian Knitting Mills v Grant case?
What was the primary legal issue in the Australian Knitting Mills v Grant case?
Under s 61 of the Goods Act, what can parties do regarding implied terms?
Under s 61 of the Goods Act, what can parties do regarding implied terms?
What legal principle is established when goods are described as 'merchantable?'
What legal principle is established when goods are described as 'merchantable?'
What characterizes goods as having 'merchantable quality'?
What characterizes goods as having 'merchantable quality'?
In the case of David Jones v Willis, why were the shoes deemed not of 'merchantable quality'?
In the case of David Jones v Willis, why were the shoes deemed not of 'merchantable quality'?
What is implied when a sale is made by sample according to the Goods Act 1958 (Vic)?
What is implied when a sale is made by sample according to the Goods Act 1958 (Vic)?
Which condition must be fulfilled for the implied term as to suitability to apply under Section 19(a)?
Which condition must be fulfilled for the implied term as to suitability to apply under Section 19(a)?
If goods are labeled as having 'merchantable quality', what can be inferred about their performance?
If goods are labeled as having 'merchantable quality', what can be inferred about their performance?
What legal consequence arises if goods sold by sample do not match the sample in quality?
What legal consequence arises if goods sold by sample do not match the sample in quality?
What aspect differentiates 'merchantable quality' from merely being in good condition?
What aspect differentiates 'merchantable quality' from merely being in good condition?
What example illustrates a failure to meet the criteria for 'merchantable quality'?
What example illustrates a failure to meet the criteria for 'merchantable quality'?
What does the informal expression 'there is nothing between this house and the north pole' imply about the house?
What does the informal expression 'there is nothing between this house and the north pole' imply about the house?
What was EA's argument regarding the contract with WP?
What was EA's argument regarding the contract with WP?
According to the implied term in s19(a) of the Goods Act 1958 (Vic), what is essential for its application?
According to the implied term in s19(a) of the Goods Act 1958 (Vic), what is essential for its application?
What was revealed about the windows supplied by WP?
What was revealed about the windows supplied by WP?
What does the proviso at the end of section 19(a) specify?
What does the proviso at the end of section 19(a) specify?
In the case of Baldry v Marshall, what did M express about the car he wanted?
In the case of Baldry v Marshall, what did M express about the car he wanted?
Which aspect was NOT considered in determining whether the implied term had been breached?
Which aspect was NOT considered in determining whether the implied term had been breached?
What is a necessary condition for a buyer to rely on an implied term under s19(a)?
What is a necessary condition for a buyer to rely on an implied term under s19(a)?
Study Notes
Implied Terms: Generic Terms
- Generic terms refer to terms implied into specific classes of contracts, such as sales, leases, insurance, and doctor-patient agreements.
- These terms can be implied through common law or statutory provisions, such as the Goods Act 1958 (Vic).
Generic Terms: Common Law
- At common law, a term is implied if the enjoyment of the rights conferred by the contract would be rendered worthless without it.
- The case Breen v Williams illustrates this principle, involving a dispute over medical record access.
Breen v Williams Overview
- In this case, a doctor refused to provide medical records to a patient without indemnification.
- The court ruled that while doctors must exercise due care and skill, there is no incorporated obligation to act solely in the best interest of the patient.
Generic Implied Terms: Legislation
- The Goods Act 1958 (Vic) establishes implied terms in specific sales contracts.
- Key sections of the Act include provisions for sales by description, sample, and fitness for purpose, along with allowances for exclusion.
Sale of Goods by Description (s 18)
- Contracts selling goods by description include an implied condition that the goods must match the given description.
- In Varley v Whipp, the court found that a reaping machine described as "nearly new" did not correspond with the actual item's condition, resulting in a breach of contract.
Sale of Goods: Merchantable Quality (s 19(b))
- Goods sold by description imply a term of "merchantable quality," meaning they should be acceptable for sale and usable for their intended purpose, barring any defects known to the buyer.
- The Australian Knitting Mills v Grant case highlighted that underwear causing dermatitis was still considered of merchantable quality due to general buyer behavior.
Examples of Merchantable Quality
- In David Jones v Willis, shoes sold as "comfortable walking shoes" were deemed not of merchantable quality after they failed during normal use, leading to serious injury.
- Goods not fit for their intended use fail the merchantable quality test.
Sale by Sample (s 20)
- When goods are sold based on a sample, the contract implies that the goods must match the sample and be free from hidden defects which render them "unmerchantable."
Implied Term of Suitability (s 19(a))
- When a buyer informs a seller of the intended use of goods and relies on the seller's expertise, there is an implied term that goods should be fit for that purpose.
- The case Expo Aluminium v WR Pateman confirmed that despite informal language, sufficient indication of use and reliance on seller expertise justified the implied term.
Proviso on Fitness for Purpose
- A proviso in section 19(a) states that no implied condition for fitness exists if goods are purchased by brand name and the buyer is not relying on seller judgment.
- In Baldry v Marshall, a buyer's detailed specifications for a car were disregarded when the car was identified by make alone, limiting the seller's liability.
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Description
This quiz explores the implied terms and generic terms within various classes of contracts, focusing on the principles of business law. It delves into specific types of contracts such as sales, leases, insurance, and contractual relationships between professionals and their clients. Test your understanding of how these terms operate within the legal framework.
