Chapter 5B - Contracts for the supply of goods, services, or materials and services Flashcards
SOGA 79 doesn’t regulate HP, barter, contracts for services or supply of works and materials.
Different Acts of Parliament protect the above
Supply of Goods and Services Act 1982 (then amended by the Supply of Goods and Services Act 1994): regulates transfer of goods without money, transfer of possession or use in case of hire, and supply of services (with or without materials)
The Consumer Credit Act 1974 (amended by the 2006 Act) regulates consumer HP agreements and some aspects of consumer hire agreements.
B2C contracts dated 1st of October 2015 and thereafter are regulated by the Consumer Rights Act 2015.
Supply of Goods and Services Act 1982
Contracts for the supply of goods (Sections 2-5)
Contracts for the supply of goods (Sections 2-5)
These sections imply terms of contract for work, materials, and barter, where property in goods is transferred without money consideration or goods are part of the services contract (painting, decorating)
Supply of Goods and Services Act 1982
Contracts for the supply of goods (Sections 2-5)
Section 2 - Ownership
Contract must contain:
implied condition that transferor owns the goods and has the right to sell them
implied warranties that the goods are not encumbered by third party rights (such as HP) and that transferee will enjoy quiet possession of the goods
Supply of Goods and Services Act 1982
Contracts for the supply of goods (Sections 2-5)
Section 3 - Description
Implied condition that in a transfer of goods by description, they correspond to their description.
Supply of Goods and Services Act 1982
Contracts for the supply of goods (Sections 2-5)
Section 4 - Quality and fitness
Implied condition that goods transferred are of satisfactory quality and that they are reasonably fit for purpose for which they have been supplied.
Supply of Goods and Services Act 1982
Contracts for the supply of goods (Sections 2-5)
Section 5 - Sample
Implied condition that, in the case of transfer of goods by the reference to a sample, the goods will correspond to the sample.
This applies to business and private sales.
Supply of Goods and Services Act 1982
Contracts for the hire of goods (section 7 to 10)
These sections imply terms into contracts for the bailment of goods by the way of hire.
Supply of Goods and Services Act 1982
Contracts for the hire of goods (section 7 to 10)
Section 7 - Possession
Implied condition that bailor (person from whom the goods are hired) is entitled to transfer possession for the period of the hire..
Implied warranty that bailee (person hiring the goods) has the right to quiet possession of the goods, without encumbrance.
Supply of Goods and Services Act 1982
Contracts for the hire of goods (section 7 to 10)
Section 8 - Description
Implied condition that where goods are referred by description, the goods will correspond to that description.
Supply of Goods and Services Act 1982
Contracts for the hire of goods (section 7 to 10)
Section 9 - Quality and fitness
Implied condition that goods hired are of satisfactory quality and are fir for purpose.
Supply of Goods and Services Act 1982
Contracts for the hire of goods (section 7 to 10)
Section 10 - Sample
Implied condition that goods conform to the sample.
Supply of Goods and Services Act 1982
Contracts for the provision of services (Sections 13 to 16)
Supply of goods are generally subject to strict contractual liability and are only capable of being excluded subject to section 6 and 7 of the Unfair Contract Terms Act 1977.
Supplier duties are those of care.
Supply of Goods and Services Act 1982
Contracts for the provision of services (Sections 13 to 16)
Section 13 - Reasonable care and skill
Case: Wilson v Best Travel (1993)
Implied term that the service will be performed with reasonable care and skill.
Case: Wilson v Best Travel (1993)
Claimant suffered leg injuries while on holiday in Greece when he tripped on a glass patio door of the hotel. The glass fitting met the Greek standards, but not the British safety standards. He sued the tour operate for lack of care allowing bookings to that hotel.
Held: No Section 13 liability, as the prevailing standards were Greek and they were met.
Supply of Goods and Services Act 1982
Contracts for the provision of services (Sections 13 to 16)
Section 13 - Reasonable care and skill
Case: Midland Bank Trust v Hett Stubbs and Co (1979)
Case: Kimber v William Willett (1947)
Case: Luxmore-May v Messenger May Baverstock (1990)
Case: Midland Bank Trust v Hett Stubbs and Co (1979)
Solicitors failed to register an option to purchase granted to their clients.
Held: they were liable for damages since they failed to exercise the skill that would be expected from solicitors.
Case: Kimber v William Willett (1947)
A firm of carpet buyers left a carpet in a condition that was dangerous to the occupiers.
Held: firm was liable, standard of the work wasn’t reasonably met.
Case: Luxmore-May v Messenger May Baverstock (1990)
Firm of auctioneers failed to identify the paintings they were auctioning for their client were by artist Stubbs. Paintings were re-sold months later, where the true identity was discovered.
Held: auctioneers were not liable, as court established that valuation of unknown artists is not a precise science, and provincial firm was not expected to have that knowledge.
Supply of Goods and Services Act 1982
Contracts for the provision of services (Sections 13 to 16)
Section 14 - Reasonable time
Case: Charnock v Liverpool Corporation (1968)
Where the contract is silent as to the time of performance, and intention cannot be ascertained from intention in previous dealings. This section implies it needs to be performed within reasonable time.
‘Reasonable time’ is not defined and may vary according to circumstances
Case: Charnock v Liverpool Corporation (1968)
Garage took 8 weeks to repair a motorcycle. Claimant said it should have only taken 5 weeks.
Garage was short of staff and concentrating efforts on other vehicles as well.
Held: Garage was liable.
