The terms of a contract The terms of a contract identify the rights and obligations of each party under that contract. A contract is simply a set of terms – duties, rights and sanctions, some of which may be written and some oral. The terms create contractual obligations for the breach of which an action lies. The terms may be express or implied. Express Terms. The express terms are those specifically agreed by the parties. Implied terms. Implied terms are those that form part of the contract but have not been specifically agreed between the parties during negotiations for that contract. Terms can be implied into the contract in various ways; - Terms implied by custom and practice. Perhaps a more obvious example here would be the fact that contracts in the baking industry which refer to the term "dozen" may actually mean thirteen rather than twelve as this is a custom within that industry. "It has long been established that, in commercial transactions, extrinsic evidence of custom and usage is admissible to attach incidents to the written contract, in matters about which it says nothing... and this has been done under the principle of presumption according to which, in such transactions, the parties did not intend to express in writing the whole contract by which they intended to be bound, but a contract with reference to those known uses. Corporation Ltd v Ipswich Plant Hire Ltd (1975) 1ALL ER 1059. Both parties were engaged in the business of hiring...... middle of paper ...the phrase "has the right to cancel the contract" or in some other sense as in Wickman v Schuler. The next question is whether the breach of the term in question creates a right of repudiation. This may arise by law or as a result of a judicial decision on particular contractual terms, e.g the cargo ready" in The Mihailis Angelos where the courts have decided such violation will ipso facto give rise to a right of repudiation on the part of the other party. In these two classes of cases the consequences of non-performance are irrelevant or, more precisely, are assumed to go to the root of the contract. There remains the unspecific class in which the events produced by the breach are such that it is reasonable to qualify the breach as going to the root of the contract and therefore justifying repudiation.."