Contents Flashcards
How can express terms be incorporated into a contract?
By signature
By reasonable notice before or at the time of the contract
A previous consistent course of dealing
How can a previous course of dealing be incorporated into a contract?
Regular course of dealings on exactly the same terms.
3/4 dealings per year and a sale note has routinely been handed over.
What are the three classifications of terms?
Conditions
Innominate terms
Warranties
What are ‘conditions’?
Terms which go to the heart of the contract.
What is the remedy for a breach of a condition?
Termination of the contract and damages
What are ‘warranties’?
A minor term of the contract.
What is the remedy for a breach of remedy?
Damages only
What are ‘innominate terms’?
A term which cannot be classified as either a condition a warranty.
What is the remedy for a breach of innominate term?
This depends on the severity of the breach.
If it is a fundamental breach, the injured party can repudiate and claim damages.
If it is non-fundamental, the injured party can only claim damages.
How can terms be implied into a contract?
By well-known and legally binding customs of a particular trade.
Where it so obvious that the contract would be unworkable without the relevant term.
Implied by common law.
Implied by statute.
What conditions can be implied into B2B contracts from the Sale of Goods Act? (3)
The seller must have the right to sell the goods.
The goods should correspond with their description.
The goods should be of satisfactory quality.
What conditions can be implied into B2B contracts from the Supply of Goods and Services Act? (3)
The transferor has the right to transfer the property.
The goods should correspond with their description.
Goods will be of satisfactory quality.
What innominate terms can be implied into B2B contracts from the Supply of Goods and Services Act? (3)
Where work or a service is done in the course of business, it will be carried out with reasonable care and skill.
Work will be done within a reasonable time.
A reasonable sum will be charged if a price has not been fixed.
What conditions are implied into B2C contracts for goods and services under the CRA? (3)
Goods should be of satisfactory qualify
Goods should be fit for purpose
Goods should correspond with their description
What innominate terms are implied into B2C contracts for goods and services under the CRA? (4)
The seller has the right to sell or transfer goods at the time.
Services should be carried out with reasonable care and skill.
A reasonable sum will be charged if a price is not fixed.
Work will be done in a reasonable time.
What rights do consumers have if the goods do not correspond to the contract (quality or description) or not fit for purpose?
A short-term right to reject
The right to repair or replacement
The right to a price reduction or final right to reject the goods to get a partial refund
What is the time limit for the short-term right to reject goods where they do not correspond to the contract?
Non-perishable goods = 30 days from the date of delivery
Perishable = no longer than the goods could reasonably be expected to last.
What are consumers rights where services/work do not conform to the contract due to breach of an express/implied term?
Section 54 CRA - the consumer has a right to require repeat performance.
What are consumers rights where services/work are not completed in a reasonable time?
The consumer has a right to an appropriate price reduction.
What is the difference between a guarantee and an indemnity in terms of their obligations (primary/secondary)?
A guarantee is a secondary obligation that supports a primary obligation - to fulfil the obligations of a third party if they fail to do so.
An indemnity is a primary obligation - a promise to be responsible for another’s loss.
