IMPLIED TERMS AND EXCLUSIVE SUPPLY CONTRACTS

Ultraframe (UK) Ltd v Tailored Roofing Systems Ltd [2004] EWCA 585; [2004] BLR 341

In Ultraframe (UK) Ltd v Tailored Roofing Systems Ltd [2004] EWCA 585; [2004] BLR 341 the Court of Appeal refused to imply a term into an exclusive supply contract that the supplier would not act in such a way as deliberately to prejudice or undermine the ability of the purchaser to deal with customers in the ordinary course of business or that the supplier should act in all good faith towards the purchaser. The principal factors which persuaded the Court of Appeal that it was not appropriate to imply such terms into the contract were that there was no obligation on the part of the purchaser to buy goods nor was there any obligation on the supplier to supply minimum quantities of the goods.