Singapore Contract Law Implied Terms

Singapore Contract Law: Understanding Implied Terms

In Singapore contract law, implied terms refer to the provisions that are not expressly stated but are nevertheless considered a part of the agreement. These terms are implied by law or by the circumstances surrounding the agreement. Understanding implied terms is crucial for both parties involved in a contract as it sets out the rights and obligations of each.

Types of Implied Terms

There are two types of implied terms in Singapore contract law: statutory and common law. Statutory implied terms are those that are provided by relevant legislation, such as the Sale of Goods Act. On the other hand, common law implied terms are those that are not specifically mentioned in the contract but are deemed necessary to give effect to the parties` intentions.

For example, a common law implied term in every contract is the duty to perform the agreement in good faith. This means that each party has an obligation to act with honesty and fairness towards the other to ensure that the contract is upheld.

Implied terms may also be classified as terms implied in fact or terms implied by law. Terms implied in fact are those that both parties have agreed to, but which were not expressly stated. These terms may be inferred from the conduct of the parties, the nature of the agreement, or the surrounding circumstances. Terms implied by law, on the other hand, are those that are deemed to be necessary for the contract to be valid and enforceable.

Examples of Implied Terms

A common example of an implied term in Singapore contract law is the implied warranty of fitness. This warranty is implied in contracts where the seller supplies goods that are fit for the purpose for which they are being purchased. For example, if you purchase a washing machine, it is implied that the appliance is fit for washing clothes.

Another example of an implied term is the duty to disclose. This term is commonly applied in contracts of insurance, where the insured has a duty to disclose all material facts that may affect the insurer`s decisions. If the insured fails to disclose such information, the insurer may have the right to avoid the contract.

Conclusion

In conclusion, understanding implied terms is crucial when it comes to Singapore contract law. Implied terms set out the rights and obligations of each party, and they provide clarity in the event of a dispute. As a professional, it is important to ensure that articles related to contract law include relevant keywords such as “implied terms,” “common law,” and “statutory implied terms” to optimize for search engines. Ultimately, having a comprehensive understanding of implied terms will help both parties in a contract create a legally binding agreement that meets their needs and expectations.

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