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The clause cannot be too wide in terms of area, time and scope of limitation.Example: ROT in contract of a baker:(i)Singapore(ii)Whole WorldAffects the likelihood – too wide Unlikely to have worldwide presence Unless the brand is so well known worldwide then the restraint cannot be applied – Coca Cola/ Brands name?(i) 6 months(ii) 60 yearsCoca Cola – still going strong (i) Cannot work as a baker(ii) Cannot work in a restaurant, bakery or caféThis clause prevents you from improving your ability IMPLIED TERMS•As said, in addition to express terms, a contract may have implied terms:
Implied Terms – Statutes•A term may be implied by a statute.•For instance, the Sale of Goods Act, states that each time a person enters into a contract to buy goods, there are certain automatically implied terms such ass that the goods purchased must be of satisfactory quality.•But note: there are not that many statutes which imply terms into contracts.•But not that commonImplied Terms – Custom•A term may be implied by custom (like in customization).•That is, if there is a very long-standing, well established and reasonable custom- eg: in a particular industry, that may be implied into a contract relating to that industry (in a context of a particular trade or industry).•instance a contract with the bank in relation to the operation of an account It is a custom among banks in Singapore that if a cheque is more than six months old, it will not be honoured.•But note: it is not easy to establish custom and hence implication by custom is not that common/rarely implied into the contract.•Difficult to prove •Case Example:•Sagar v Ridehalgh:•Employer claimed he had a right to deduct from cotton weaver’s wages for bad work.•This had been practiced in the factory for more than 30 years.•This was also the practice is the whole of the cotton weaving industry at that time.•What do you think the court decided?•30 years is a long time long standing in the industry Implied Terms – Courts•The courts may also imply terms into contracts.Terms may be Implied by:StatutesCustomCourts
•This is by far the most common way in which terms are implied.•Essentially there are two categories of implied terms: terms implied by fact and terms implied by law. Terms implied by fact would be considered first.•How does the court get an opportunity to imply a term? oto fill in gaps based on the presumed intention of the parties(1)What is the test used by the courts to imply terms? Is it just based on the court’s concept of “fairness” or are there more specific tests?a.One test that has been used by courts to imply terms on this basis is the “officious bystander” test.