First Principles of Business Law

The contents of a contract

6. Terms implied by law into all contracts

6.2. A 'universal' duty of cooperation

 

 

 

Read facts and the question and then choose the best answer.

A says to B: "I agree to buy your farm for $750,000 provided that an inspection is carried out by my own expert, at a time convenient to you, and that the expert certifies the absence of any toxic contamination in the soil."

A and B sign a written contract containing these terms. But, for the next three months, B keeps saying that it is not yet convenient for A's expert to test the land. A says that, by refusing to be cooperative, B is in breach of the terms of the contract. Is A correct?

(a) Yes, because a duty of cooperation becomes becomes a term of all contracts, by operation of law.

(b) No, because no term was agreed to requiring cooperation in this matter - it is left to B to decide what time would be convenient.

 

 

 

 

 

 

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