Can a term be implied into a CFA?

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Published on LexisPSL on 17/07/2015

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Can a term be implied into a CFA?

Can a term be implied into a CFA?

There is little authority in this area. The underlying substantive law in relation to implied terms is considered in Practice Note: Express and implied terms.

A valid and binding CFA must be in writing (Courts and Legal Services Act 1990, s 58(3)(a)). Any variation to that agreement should also be in writing. For the court to order that a term be implied into the CFA, essentially varying it will therefore be in exceptional circumstances.

In the following cases, the judges refused to imply terms in CFAs:

  1. Motto—the SCCO refused to imply terms into a CFA to enable recovery of interest. The question asked in reaching

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