implied condition

Definition 1

General: Fundamental condition enforced by courts, even if it is not expressly included in a contract document by the contracting parties. In law, an unwritten requirement (that is deemed important in light of the facts and circumstances of a contract) implies a condition (called condition precedent) of the contract. For example, if a quantity of umbrellas is ordered to be delivered before the rainy season but they arrive only after the season has ended, that order may be cancelable even if the words “Time is of the essence” are not included in the order.

Definition 2

Insurance: Unwritten condition of an insurance policy which has evolved (from the basic insurance principles) over the years and is deemed to be 'understood' by the insured. For example, it is implied in property insurance policies that the insured party has an insurable interest in the property covered by the policy.