IAI Actuarial Core Principles · Business Management · Implied terms, exclusion of liability, contractual remedies and damages

Sundaram Actuarial Consultants engages Priya under a written agreement that sets out her duties, fees and a one-year term. During the engagement, a dispute arises over whether Priya must keep client data confidential, a point the written document does not mention. Which statement best describes the legal position on an express term compared with an implied term?

An express term is one the parties have actually stated in their contract, while an implied term is not stated but is read in by law, custom or the circumstances. So an unwritten confidentiality duty can still bind Priya if it is properly implied.

1. AAn express term is one actually stated by the parties in the contract, whereas an implied term is one the law or the circumstances read into the contract without the parties stating itCorrect
2. BAn express term is one imposed by statute, whereas an implied term is one the parties have written down in the contract
3. CExpress and implied terms are identical in effect, and the distinction matters only for stamp duty purposes
4. DAn implied term can exist only if the parties have signed a separate written document that records it
5. An express term can be enforced only in court, whereas an implied term can be enforced only by arbitration