The courts imply terms from the factual context in order to give effect to what courts perceive as the unexpressed intention of the parties. The idea is that, whether through forgetfulness, lack of time, or bad drafting, the parties failed to include a term which they would have done if they had thought about it. Which test do the courts apply when implying terms in fact?
A) A term will be implied in fact where the courts deem it necessary to give business efficacy to the contract
B) A term will be implied in fact where the court deems it reasonably necessary, having regard to the context and the price.
C) A term will be implied in fact where the courts deem it reasonable in order to achieve a fair and practical allocation of risks between the parties.

Question

Quizplus · Accepted Answer

The courts apply the "business efficacy" test, which implies a term in fact if it is necessary to make the contract work as intended by the parties.

The Courts Imply Terms from the Factual Context in Order