Which statement best describes an implied term?

• A. Fitness for purpose is an implied term commonly recognized by law.
• B. Delivery date is always an implied term.
• C. Price is never an express term.
• D. Implied terms arise only from international treaties.

Answer: (A)

Implied terms are terms the law inserts into a contract even if the parties haven’t written them down. They come from the way such contracts operate and from statutes or the courts, filling gaps so the agreement works in practice. Fitness for purpose is a classic example in the sale of goods: if you tell the seller what you intend to use the goods for and you rely on the seller’s skill or judgment, the law implies that the goods will be fit for that purpose. This obligation is well established in statute and in case law, which is why it’s widely recognised as an implied term.

Delivery date isn’t automatically an implied term in every contract; it can be an express term or may depend on the contract’s specifics. Price can be an express term if the parties specify it, and there are also implied aspects of price in certain contexts. And implied terms come from statute and common law, not only from international treaties.