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Additional resources for Cavendish: Contract Lawcards
In that case, the contract included an express clause that the 49 CONTRACT LAW • By the intention of the parties. The court must ascertain time for payment of instalments was ‘of the essence of the contract’. An accountant had contracted to hire a computer for five years, agreeing to make an initial payment and 19 quarterly rental payments. He was late in paying some instalments, and the owners terminated the agreement, recovered possession of the computer, and claimed damages not only for the arrears, but also for loss of future instalments.
There are two tests. A term may be implied because: • It is necessary to give business efficacy to the contract. In The Moorcock (1889), a term was implied that the riverbed was in a condition that would not damage a ship unloading at the jetty. • It satisfies the ‘officious bystander’ test, that is, if a bystander suggested a term, the parties would respond with a common ‘of course’. In Spring v NASDS (1956), the union tried to imply the ‘Bridlington Agreement’. ”’. 44 CAVENDISH LAWCARDS The Moorcock doctrine is used in order to make the contract workable, or where it was so obvious that the parties must have intended it to apply to the agreement.
Her daughter agreed but was not very successful. Mrs Jones stopped paying the monthly allowance but allowed her daughter to live in her house and receive the rents from other tenants. Mrs Jones later sued for possession. The daughter counterclaimed for breach of the agreement to pay the monthly allowance and/or for accommodation. Held (a) the first agreement may have been made with the intention of creating legal relations, but was for a reasonable time and would in any case have lapsed; (b) the second agreement was a family arrangement without an intention to create legal relations.