Contract Terms Implied To Give Sense To An Agreement

On occasion a contract would be meaningless or inoperable without including a particular term, even though the parties themselves may have failed to include it expressly in their agreement.

In circumstances such as these the court will imply the term to give effect to and in order to make sense of the contract.

The leading case in this area is that of Schawel v Reade [1913] 2 IR 64. In this case the claimant went to the defendant to buy a stallion for stud purposes. When inspecting the stallion the defendant said “You need not look for anything: the horse is perfectly sound. If there was anything the matter with the horse I would tell you”. Following this the claimant halted it’s inspection and bought the horse, later however it turned out that the horse was not fit for stud purposes. The court held that this was not an express warranty that the stallion was fir for stud purposes but it was an implied as this assurance was the purpose for which the claimant was buying the horse.

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