A business contract includes a term saying that a manufacturer will use "smooth grained sand" in a construction project "if this quality is available. The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials. This is an example of the court introducing an implied term based on
A) principles of statutory interpretation.
B) statutory requirements.
C) business efficacy.
D) previous dealings between the parties.
E) the nature of the trade.

Question

Quizplus · Accepted Answer

The court is introducing an implied term based on business efficacy, which means that the court will imply a term that is necessary in order to make the contract workable or commercially effective. In this case, it is necessary for the manufacturer to use "smooth grained sand" in order to fulfill the purpose of the construction project, so the court will likely imply a term that requires the manufacturer to make reasonable efforts to find the specified materials.

A Business Contract Includes a Term Saying That a Manufacturer