Term, Implied

Implied terms are terms that the law implies into a contract even though they are not stated in the contract. Implied terms may arise from two sources, common law and statute law. In common law, terms are implied when it is necessary to give full effect to the intention of the parties. For example, a term that is so fundamental that the contract could not be performed without the term may be implied into the contract. Australian Consumer Law now provides statutory guarantees that are very similar to the terms previously implied into contracts. Because these terms are not implied into a contract they do not give rise to contractual remedies; instead, remedies are incorporated in the Australian Consumer Law. See also Representations, Pre-contractual and Puffery.