Officious bystander test

Officious bystander test

In deciding whether a term is implied into a contract the court will ask itself, ‘If an officious bystander was listening to the two parties to a contract discussing its terms and pointed out to them that a term should be included, would they have both thought it so obvious that they would have turned on him in irritation and said “Oh, of course”?’ It is used by a court to decide whether a term should be inserted into a contract by the court, even though that point was not discussed before the contract was made. If the court is satisfied that the only reason the point had not been discussed was because it was so obvious to both parties that it did not need discussing, and it was the intention of both parties that the term should be included, it will be implied into the contract by the court (The Moorcock (1889)).

02/12/2020

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