In Dansway International Transport Ltd. v. Lesway and Sons Inc., a disagreement arose as to the time for payment and delivery, neither of which were stipulated in the contract. What did the Court do?
A) The Court implied the required terms into the agreement.
B) Because issues surrounding the time of payment were in question, the agreement failed for a lack of consideration.
C) The Court ordered rescission because the actual intention of the parties as to these terms was unclear.
D) Because even insignificant terms must be specified, the agreement was found to be void for a lack of consensus.
E) The Court severed the provisions in the agreement relating to payment and delivery.

Question

Quizplus · Accepted Answer

In the absence of explicit terms regarding payment and delivery, the Court will imply these terms into the agreement. This is known as the "officious bystander" test, where it is assumed that if an officious bystander were to ask the parties about the terms in question, they would have agreed on a particular answer. Therefore, the Court will supply what it considers to be the missing terms.