CONTRACT LAW ASSIGNMENT 3 - Essay Example

It also depends upon the liability of the company. Here the company seems to have committed gross negligence resulting in grievous injuries on the customer and also damaged the car to the tune of 1500. Company is liable despite disclaimer notice, because disclaimer notices are mainly for the protection of the person who has placed it and will not stand in the Court of Law. The fact that company has installed car washing machines in its premises providing washing facility to customers is sufficient for the contract between users and company.

If disclaimer has legal effect, they the customer will not be able to sue the company. In spite of disclaimer there is an implied contract between the Petrol Company and people who go for car wash, as it is installed in their premises with proper guidance and advertisement and this fact will go in favour of the injured person. Maintaining a definitely faulty washing machine that could break the skull of a customer will not work in favour of the petrol company. In contract, implied terms carry almost as severe legality as written contracts.

This is not a very significant area of law any more. Still, conceptually speaking about specific contracts, sometimes we come across contracts where a certain term is used for a specific number of years, for example, rent contracts or employment contracts which run for a certain time, longer than some other contracts. Every term in such contract is rarely specified; but it is implied, understood and it exists. Most of the employment terms are implied because they are based on common sense, natural law and accepted in society.

The other category comes under 'giving effect to intention of parties'. This type is more common and regularly used. These terms might not have been mentioned due to careless draftsmanship or inadvertently and usually Court takes it as existing. It adds the terms of implement presuming the intention of the contract parties1. These are the prima facie terms which are too obvious to be stated. Courts acknowledge that if all terms under all circumstances have to be stated, there is no end to terms of contracts and rest of the terms could be implicated if main terms are stipulated.

But these terms have to be intended by both the parties2 and not by just one party3. Also there are terms which could be implied by statute and here initial intention of the parties does not matter4. New and old legislation terms could be implied to contracts to protect either one or both the parties. This need not have acceptance of any party and Court could do it independently5. Legislation could be primary or delegated and parties cannot contract out of the implied terms as they become mandatory.

These are mainly consumer protection legislations; but need not be always so. New legislations, amendment to the old legislations, revoking of earlier legislations in favour of new legislations all fall into this category. For example: The sales of Good Act and its Amendments. There are certain terms which are inspired by other acts and closely touch the present act also could be added as implied terms according to the circumstances. QUESTION THREE: Contractual attempts to exclude all liability for economic loss are not always