A and B have been dealing together for 10 years,during which time A buys steel ingots from B.Throughout the 10-year period,A has always ordered the highest quality steel from B and B has delivered it.Last week,A ordered 1000 ingots of steel from B,but when he filled out the purchase order,A forgot to specify the highest quality of steel,and when the purchase order was received,B's employee delivered steel ingots of a lesser quality to A.A refuses the shipment,and B,whose business is suffering in a bad economy,finds himself forced to sue A.In this situation
A)the court will be unable to import any kind of term into the contract because it is in writing.
B)the court will consider that it was a condition precedent to the purchase by A that the steel ingots be of the highest quality.
C)the court will look at the previous dealings of A and B and imply a term that B was to supply steel ingots of the highest quality.
D)the court will set aside the contract by reason that it is silent as to the quality of steel that B is to supply to A.
E)none of the above

Question

Quizplus · Accepted Answer

The court will look at the previous dealings between A and B and imply a term that B was to supply steel ingots of the highest quality, as this has been the consistent practice in their 10-year business relationship. This principle is known as the "implied term of quality" and is based on the idea that parties to a contract intend to deal with each other fairly and consistently. As such, the court may imply terms into a contract to reflect past dealings, industry standards, or commercial expectations.

A and B Have Been Dealing Together for 10 Years,during