Contract interpretation—terms implied by fact

Published by a LexisNexis Dispute Resolution expert
Practice notes

Contract interpretation—terms implied by fact

Published by a LexisNexis Dispute Resolution expert

Practice notes
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This Practice Note considers how contractual terms may be implied by fact. Implied terms are not stated in the contract but arise 'by implication' to reflect the intention of the parties at the time the contract was made.

Express and implied contractual terms distinguished

Contractual terms may be either express or implied:

  1. express terms—are terms which are actually recorded in a written contract or openly expressed in an oral contract at the time the contract is made. See Practice Note: Contract interpretation—express terms in contracts

  2. implied terms—are not stated in the contract but arise 'by implication' to reflect the intention of the parties at the time the contract was made. Terms may be implied by fact, law or custom

This Practice Note considers those terms implied by fact.

For guidance on terms implied by law, see Practice Note: Contract interpretation—terms implied by law.

For guidance on those terms implied by custom and usage, see Practice Note: Contract interpretation—terms implied by custom and usage.

How might terms be implied into a contract (the implication

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Jurisdiction(s):
United Kingdom
Key definition:
Good faith definition
What does Good faith mean?

An overarching concept for being open and honest in negotiations that goes beyond the idea of not deceiving the other party.

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