As businesses and individuals navigate the process of settling disputes through agreements, it is important to understand the concept of implied terms. Implied terms are clauses that are not explicitly stated in the agreement but are assumed to be a part of it. These terms can have significant implications for the parties involved.

In settlement agreements, implied terms can help clarify and solidify the terms of the agreement. For example, if the settlement agreement includes a clause that one party will pay the other a certain amount of money, an implied term might be that the payment must be made by a certain date. While this deadline may not be explicitly stated in the agreement, it is understood and assumed to be a part of it.

Another example of an implied term in settlement agreements is the duty of good faith. This term means that both parties are required to act honestly and fairly in their dealings with each other. While not specifically stated in the agreement, it is assumed that both parties will abide by this principle. If one party breaches this duty, it could result in the agreement being voided or a claim for damages.

Implied terms can also be used to fill gaps in the agreement. For example, if the settlement agreement is silent on how future disputes will be resolved, an implied term may be that the parties will use arbitration or mediation to resolve any disputes that may arise.

However, it is important to note that not all implied terms are enforceable. For an implied term to be legally binding, it must be necessary to give business efficacy to the agreement or be so obvious that it goes without saying. In addition, the implied term cannot contradict any express terms of the agreement.

In conclusion, implied terms are an important aspect of settlement agreements. They can help to clarify and solidify the terms of the agreement, fill gaps, and ensure that both parties act in good faith. However, it is crucial to ensure that any implied terms are enforceable and do not contradict any express terms of the agreement. As always, it is recommended to consult with a legal professional experienced in settlement agreements to ensure that your rights are protected.