Distinguish express terms from implied terms; how are statutory implied terms created (e.g., under SGA/CRA)?

• A. Express terms are stated; implied terms are only created by courts, not by statute.
• B. Express terms are stated; implied terms fill gaps by statute or common law; statutory implied terms include fitness for purpose and satisfactory quality under SGA/CRA.
• C. Express terms are more important than implied terms.
• D. Implied terms can never be created by statute.

Answer: (B)

Express terms are the promises the parties actually write into the contract. Implied terms aren’t written down but are read into the contract by law to fill gaps or reflect what the law presumes the parties intend in order for the contract to work properly. Statutory implied terms are created by statute, not by the courts alone. Parliament enacts provisions that automatically insert certain terms into contracts in specific contexts. For the sale of goods, statutes like the Sale of Goods Act and the Consumer Rights Act set out implied terms that the goods must be of satisfactory quality and fit for purpose, even if the contract says nothing about those qualities. These terms apply by operation of law and provide remedies when they’re broken, alongside any express terms in the contract.