Can a tacit term be read into a contract?

images contract[1]In the case of Plaaskem (Pty) Ltd v Nippon Africa Chemicals (Pty) Ltd, the parties entered into a written contract on 25 February 2005 wherein the appellant was contracted to distribute imported agricultural products and then pay the respondent the amount owing as the respondent had a relationship with a Japanese manufacturer of the products.

The appellant in the high court pleaded that the contract contained a tacit, alternatively implied term to the effect that the contract could be terminable by either party on reasonable notice. It was further pleaded that the contract was terminated on 30 June 2010 in terms of a notice dated 18 May 2010. It was common cause between the parties that a contract was concluded and that the contract was silent as to its duration of the contract.


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