How can gaps in express terms of a contract be filled?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

Filling gaps in the express terms of a contract is vital for ensuring that the agreement is comprehensive and enforceable. The correct method identified involves using custom, statute, or court intervention.

When there is a lack of clarity or a complete absence of certain terms in a contract, courts may look to established customs within a particular industry to determine what is standard practice and thus should apply in the situation. Additionally, statutory law plays an important role; certain laws can imply terms into contracts to cover matters that the parties did not explicitly address, ensuring fairness and compliance with legal standards. For example, in many jurisdictions, consumer protection laws may imply specific terms in contracts that protect consumers even if those terms are not stated in the agreement.

Moreover, when parties are unable to resolve gaps through negotiation, courts can serve as a last resort to interpret the contract and impose reasonable terms based on legal principles. This ensures that contracts are not rendered void simply because they are incomplete, which would undermine the parties' intentions.

The other options, while they may seem plausible, do not provide the comprehensive methods available for addressing gaps in contract terms within legal frameworks. Mutual agreement can only occur if the parties are willing to discuss changes, which isn't always feasible post-agreement. Negotiation before

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy