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Implied Term of Contract

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Implication by Custom or Usage
Last updated: 21-Jun-2015

Hutton v Warren (1836) 1 M & W 466 at 475 per Parke B:

It has long been settled, that, in commercial transactions, extrinsic evidence of custom and usage is admissible to annex incidents to written contracts, in matters with respect to which they are silent. The same rule has also been applied to contracts in other transactions of life, in which known usages have been established and prevailed; and this has been done upon the principle of presumption that, in such transactions, the parties did not mean to express in writing the whole of the contract by which they intended to be bound, but a contract with reference to those known usages.

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