A business contract includes a term saying that a manufacturer will use "smooth-grained sand" in a construction project "if this quality is available.The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials.This is an example of the court introducing an implied term based on
A)statutory requirements.
B)previous dealings between the parties.
C)business efficacy.
D)principles of statutory interpretation.
E)the nature of the trade.

Question

Quizplus · Accepted Answer

This is an example of the court introducing an implied term based on business efficacy, which means that the term is necessary to give the contract practical and commercial coherence. Courts often imply terms in contracts to ensure that they reflect the parties' intentions and make commercial sense. In this case, using "smooth-grained sand" is clearly an important aspect of the construction project, and requiring the manufacturer to use reasonable efforts to find the specified materials is necessary to ensure that the contract is workable.

A Business Contract Includes a Term Saying That a Manufacturer