Contract Law - Terms (CH6)

Question 1

What are pre-contractual statements made during negotiations of a contract?

Answer 1

1) Mere puffs – a promotional statement or advertising boast which is not intended to form part of the agreement

2) Representation - a statement of fact made when the intention of inducing the party to enter into t a contract. Representations do not form part of the contract

3) Term - a promise which forms part of the agreement - can be expressed or implied.

Question 2

What is the effect of the pre-contractual statements? I.e. what happens if they are breached?

Answer 2

Mere puff =no legal effect

Representation = possible action in misrepresentation

Express term = assess whether there has been a breach of the term (this intends it to be binding).

Question 3

How does the court assess whether the term is intended to be binding? Objective test.

Answer 3

The court will apply an objective test based on what the reasonable man would understand the intention of the parties, having regard to all the circumstances.

Did the parties intend the statement to be binding?

Yes - term
No - representation

Question 4

What factors does the court consider?

Answer 4

1) Importance of the statement
But for test applied: Statement may be regarded as a statement if it can be shown that the injured party considered it so important that it would not have entered into the contract but for the statement.
E.g. ‘if they have been treated with sulphur, I am not interested in even knowing the price of them’

2) Timing of the statement
- If the statement was made at the time of contracting - more likely to be a term of the contract
If it was made during the early stages of negotiations, or there was a delay between making the statement / the parties entering into the contract - less likely to be treated as a term.
E.g.: Routledge v McKay- Seller told buyer about year card was made, one week later bike was sold and written memorandum did not include detail about year-court held lapse of time meant the statement was a representation.

3) Reduction of the contract into writing
There is rebuttable presumption that written contracts contain all the expressly agreed terms and that all pre-contractual statements not included in the contract are merely representations.

4) Special knowledge or skill
Where the party who made the statement had exclusive access to information or special knowledge as compared with the other party, this is likely to be taken into account.
*Dick Bentley Productions v Harold Smith-defendant was a car dealer who should be taken to have better knowledge of such matters than Mr Bentley, who was not involved in the motor trade.

5) Assumption of the responsibility of the truth of the statement
A statement may become a term of the contract where the vendor expressly accepts the responsibility for the soundness of the sale item in question.
*Schawel v Reade- claimant stopped examining a horse after being told by the defendant that it was sound. Defendant would have taken the responsibility for the soundness of the horse and this became a contractual term.

Ecay v Godfrey- Seller advised buyer that boat was sound but recommended that buyer should organise a survey before purchase. Seller had not accepted responsibility for his statement about the condition of the boat, this was a representation.

Question 5

How are express terms incorporated?

Answer 5

In order for express terms to be part of the contract, the terms must be incorporated into the agreement prior to the formation of the contract.

1) By signature
2) Reasonable notice
3) Consistent Dealing
4) Common knowledge

Question 6

What is the general rule and exceptions for ‘incorporation by signature’?

Answer 6

General rule: If a contract is signed, the parties are generally deemed to have agreed to all of the contents, even if they have not read or understood the contract.

Exceptions
The signature will not bind if:
1) The document would not be expected to have contractual effect
Grogan v Robin Meredith Plant Hire-If the document signed was not one intended to have any contractual effect (e.g., it was a receipt), then the terms within it will not form part of the contract-signing such a document does not indicate an intention to be bound.

Timing is important- cannot be bound by a ‘post-contractual document’.

Curtis v Chemical Cleaning & Dyeing Co-a party cannot rely on incorporation of a clause through signature of a document if it has orally misrepresented the meaning of the clause to the other party.

2) The defence of non est facum ‘the deed is not mine
Provides a person with a defence against enforcement if the following conditions are satisfied:
1) Through no fault of his own, the person who signed the document did not understand the document he signed.
2) There was a radical or very substantial difference between what the person signed and what the person believed he was signing.

Question 7

What is the general rule and exception for ‘incorporation by notice’?

Answer 7

Terms contained in an unsigned written document can be incorporated if:

1) They are contained in a document which would be expected to contain contractual terms:

2) the other party has been given reasonable notice of the existence of the terms before or at the time of contracting.

Question 8

What is considered ‘reasonable steps and reasonable notice’ in terms of incorporation of contract terms?

Answer 8

Terms can be incorporated by notice (one party notifying the other party of them).

1) Reasonable steps have been taken to bring them to the claimant’s attention
Terms may be incorporated by reference to a different document (e.g., a ticket referring to terms in the railway timetable).

Exception
Big hand rule, only applies to particularly onerous terms
- Where a party wants to incorporate terms which are particularly adverse to the other party, it must clearly bring those to the other party’s attention.
- need to be printed in red ink, with a red hand pointing to it or something equally startling to give sufficient notice.
- Note this only relates to the incorporation of onerous terms through reasonable notice, if such terms are in a written contract then the signing party is bound if they have signed it.

2) Reasonable timing
For a clause to be incorporated into the contract, reasonable notice of it must be given before or at the time of the contract.
Any clause will not amount to a binding term if it is communicated only after the contract is made.

Example Thornton-contract had been formed before machine at entrance to car park produced ticket (acceptance took place when customer pays money at machine), so the conditions on the ticket were not incorporated into the contract.

Question 9

What does ‘notice must be with contractual effect’ mean?

Answer 9

The contractual effect is that terms will only be incorporated by notice if the document giving notice was intended to have contractual effect.

No contractual effect
Chapleton v Barry UDC - given ticket after paying for deck chair hire with conditions.

Held : not to be binding because an observer would have understood ticket to be only a receipt rather than actual terms.

Question 10

What are the requirements for incorporation by reasonable notice?

Answer 10

1) Reasonable steps must be taken to bring the term to the notice of the other party (additional efforts for onerous terms)

2) Notice must be timely

3) Document must be with contractual effect

Question 11

What is incorporation of express terms by a course of dealing?

Answer 11

Even if no notice of the terms was given on a particular occasion, where the parties deal with each other on a regular basis on standard terms and conditions, the terms may be incorporated into the contract on the basis of past dealing.

Requirements:
The party seeking to argue this must establish that the past dealings between the parties were sufficiently consistent

Question 12

What is deemed a regular / irregular course of dealings?

Answer 12

Regular:
*Henry Kendall v William Lillico- 3 or 4 times per month and 5 instances over 13 months appeared sufficiently regular.

Irregular:
1) McCutcheon v David MacBrayne-attempt to incorporate by course of dealing unsuccessful because written terms had not been consistently incorporated in the past-sometimes a signature had been required, sometimes it had not.

2) Hollier v Rambler Motors (AMC) Ltd-3 or 4 transactions over 5 years was insufficiently regular.

Question 13

Can terms be incorporated orally or via email?

Answer 13

1) Conversation or verbal exchange
Exception : 4 oral contracts between the parties
Each time the seller sent a note to the buyer on the industry standard terms and condition - there was no evidence that the seller even understood the terms themselves
HELD : Terms not incorporated

2) Writing (email) and other party agreeing (replying to email)

Exception- An email exchange between a supplier and a buyer for Superdrug set up a contract. There was a long established course of dealing between the parties on standard term agreements. In this case, a buyer with ostensible authority to purchase, sent a confirmation email to a supplier regarding quantity and had failed to refer to the standard terms and conditions. Those terms were not incorporated.

3) Website
Exception: A mobile phone contract referred to the terms which were on a website but not signed on the form. These terms were not incorporated. The position would have been different had the terms been set out in the signed agreement.

Question 14

Can the court incorporate a term on the basis that it is common knowledge in the particular industry?

Answer 14

Yes. In very rare circumstances.

British Crane Hire Corporation case
Facts : Two parties were both in the business of hiring industrial plant. Notice of a clause in a standard form hire contract was given too late for a particular contract.

Held : The term was still incorporated as the parties were aware that these standard conditions were widely in use in the plant hire business.

Question 15

What is the parol evidence rule?

Answer 15

Parol evidence rule only applies to contracts where the parties:

1) Intended the written document to contain all the written terms
2) Party is reasonably entitled to assume that the writing does contain all the terms of the contract.

What is the parol evidence rule?
General rule: Extrinsic evidence may not be adduced to vary an express written contract. Evidence not included in the written agreement ‘parol evidence’ cannot be later admitted.

Exception:
1) When the written agreement was not intended to be the whole agreement
2) Parol evidence may be adduced to question the validity of the contract
3) Parol evidence can be used to demonstrate inaccuracies in the written agreement (e.g. there has been a transcription error)
4) Collateral contracts.

Question 16

When can the parol rule not be used?

Answer 16

Where the intention of the parties was to have a contract which was partly written / partially oral.

Question 17

What are implied terms?

Answer 17

The general presumption that the parties have expressed every material term which they intend should govern their contract, but sometimes terms which have not been expressed by the parties are inferred by the courts. These includes.

1)Terms implied in fact
2) Terms implied in law (common law and statute)

Question 18

What are terms implied by Fact:

Answer 18

1) Trade or professional customs:
2) Course of dealing between the parties:
3) Business efficacy
3) Officious bystander test

Question 19

Explain what terms implied in fact: trade or professional customs means?

Answer 19

Where a term is implied on the grounds of a custom, the implication is based on the assumption that it was the intention of the parties to be bound by well known customs of the particular trade.

Note. The term will only be implied by custom where the contract is silent on the matter. A term will not be implied by custom where it would be contrary to an express term of a contract (as this would be contrary to the wishes of the parties).

Question 20

Explain what terms implied in fact: course of dealing between the parties means?

Answer 20

A term may be implied into an agreement on the basis the parties have dealt with each other on many occasions over a long period of time-only implied if the dealings have followed a consistent and regular pattern.

Question 21

Explain what the ‘business efficacy test’ is?

Answer 21

Terms can be implied to make a contract produce its intended objective - not implied merely on the grounds the implication will transform agreement into a business-like arrangement.

It makes commercial sense and goes without saying

1) A term will only be implied on this ground - where the parties have not expressly agreed something but the contract would be unworkable without the relevant term.

2) Something so obvious that if suggested to the parties - they would respond ‘oh..of course’

3) One must ask what the reasonable person would understand the contract to mean rather than enquiring as to the subjective intentions of the parties.

4)It must not contradict any express terms of the contract (so as not to contradict the intention of the parties)

Question 22

What is the officious bystander test?

Answer 22

A term which, if suggested by an officious bystander who was observing the parties, the parties in negotiation would agree with wholeheartedly.

Gardner v Coutts - Two parties entered agreement where one party agreed to give the other party the right to buy their land for £3,000 if they decided to sell it, they then gave the land to their sister.

If an officious bystander had been present, he would have implied a term that the agreement to give the party the right to buy the land would prevent him from giving the land to somebody else.

Question 23

What kind of approach do courts take when implying terms into a contract by fact?

Answer 23

The courts take a much more restrictive approach, only applying terms where it is ‘necessary’ to do so.

They are not able to seek to improve the contract or to make it fairer for the parties.

Question 24

What are terms implied by law?

Answer 24

A term may implied into a contract because the law regards it as necessary for a particular part of contract.

This gives effects to legal duties which arise, as a matter of police, out of certain common types of contractual relationships - e.g. Landlord/Tenant.

For example, in an employment contract, there is an implied duty on the employer to provide a healthy and safe environment for the employee to work in; and a duty on the employee to provide an honest and loyal service.

Question 25

Give an example of a case relating to terms implied in common law.

Answer 25

Liverpool City Council v Irwin:
Liverpool City Council rented a block of flats to the tenants. There was no term in the tenancy agreement regarding maintenance of the building. Lifts regularly broke down and rubbish chutes become blocked. The tenants refused to pay rent due to the state of the building. When Liverpool Council sought possession of the building, the tenants argued that a term should be implied imposing a duty on the landlord to maintain the common parts.

Held : The court implied a term ‘to take reasonable care to keep in reasonable repair and usability’ the common parts of the building on the basis that this was a necessary term in all tenancy agreements.

Question 26

What are terms implied by statute?

Answer 26

Certain statute indicate that stipulated terms wills have been given statutory force.

This will operate irrespective of the intention of the parties, unless they have been EXPRESSLY excluded, via a valid exemption clause.

Note. Some statutory implied terms cannot be excluded e.g. s12 Sale of Goods Act 1979.

Question 27

Why are statutory terms introduced?

Answer 27

For various policy reasons, e.g. to protect a party with unequal bargaining strength.

Question 28

What are the relevant implied terms in the Sales of Goods Act 1979 (applies to business to business contracts)?

Answer 28

S12(1) - The seller has the right to sell the goods.

S13(1) - If goods are sold by description, they will correspond with their description.

S14(2) - Goods are of satisfactory quality, which includes being generally fit for purpose.

S14(3) - The goods are reasonably fit for purpose which the buyer expressly or by implication makes known to the seller. Seller must be in the course of business for this to apply

S15(2) - If goods are sold by sample, the bulk will correspond to the sample.

Question 29

Explain s12(1) SGA 1979 ‘seller holds the title and has right to sell the item’?

Answer 29

Implied term - The seller holds title to the goods and is able to sell them.

Example : A car dealer bought a car (C) from D and sold it on. The car turned out to be stolen and was returned to the original owner. Neither C or D knew the car was stolen.
Held : D did not have the right to sell the car, as D did not obtain good title from the thief.

Question 30

Explain s13(1) SGA 1979 ‘correspond with description’?

Answer 30

Implied term : If goods are sold with by the description, they will correspond with their description.

Where goods are described as having certain characteristics and specifications, they must correspond with that description.

Note : this may still apply even where the goods have been inspected by the claimant prior to the purchase.

Question 31

What is s14(2)? ‘satisfactory quality’

Answer 31

Implied term : The goods are of satisfactory quality, other than where defects are pointed out, or the defects are such that they should have been revealed when the buyer examined the goods (if applicable).

**Satisfactory **: if they ‘meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, price and all relevant circumstances.

*Can take into account fitness for purpose, appearance an finish, freedom from minor defects, safety, durability.

*No condition as regards defects specifically drawn to buyer’s attention before contract was made, or if buyer examines goods before contract is made, defects which that examination ought to have revealed.

Question 32

Explain s14(3) ‘goods are reasonably fit for purpose which the buyer expressly makes it known to the seller’

What is the exception?

Answer 32

That the goods should be fit for purpose if the buyer makes the purpose for which they are buying the goods clear to the seller.

Seller must be in the course of the business for this to apply.

Exception : Except where the buyer does not rely or it is unreasonable for him to rely, on the skill or judgment of the seller.

Question 33

What is s15(2) ‘if the goods are sold by sample, the bulk will correspond to the sample’

What two conditions are implied here?

Answer 33

1) Bulk will correspond with the sample in quality
2) Goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.

Question 34

What are the classifications of the terms 12, 13, 14 and 15 SGA 1979?

What happens if these terms are breached?

Answer 34

They are ‘conditions’.

If they are breached, the innocent party can reject the goods and get a refund as well as claim damages.

You cannot reject the goods if:

1) Where the buyer has accepted the goods (e.g. they have intimated acceptance or otherwise kept the goods beyond a reasonable time without seeking to reject them)

2) In relation to ss13 and 14 where the breach is so slight that it would be unreasonable to reject the goods.

Question 35

What are modification of remedies (s15A)?

Answer 35

Although a breach of the s12,13,14 and 15 is a breach of a condition, this is subject to s15A.

S15A- provides that if the breach is so slight that it would be unreasonable for the buyer to reject the goods and repudiate the contract, the breach should be treated as a breach of warranty, which will only entitle the buyer to claim damages.

The burden of proof that the breach is so slight falls on the seller.

Question 36

Can you contract out the terms implied in SGA 1979?

Answer 36

S55 indicates a seller’s liability under ss12-15 SGA can be excluded and/or restricted by agreement of the parties, subject to UCTA 1977.

s6(1)(a) UCTA - implied undertaking as to title in s12 cannot be excluded or restricted

s6(1)(a) UCTA - implied undertaking as to the description, quality, fitness for purpose or sample contained in ss13-15 SGA can be excluded/restricted subject to requirements of reasonable.

Question 37

What does strict liability mean?

Answer 37

Strict liability means that the seller need not personally be at fault for the goods not matching.

Their description or otherwise being defective. The point is that for some reason the goods do not comply with one, or other, of the terms implied by the SGA 1979. The actual reason why is irrelevant.

Question 38

What does the Supply of Goods and Services Act 1982 apply to?

Answer 38

1) Contracts for the transfer of property in goods
2) Contracts for the hire of goods
3) Contracts for the supply of services

Question 39

What does ‘contracts for the transfer of property in goods mean?
What are the exceptions

CHECK how this is relevant!?

Answer 39

A contract where one person transfers or agrees to transfer to another the property in goods.

Exceptions :
1) Contract of sale of goods

2) Hire purchase agreement

3) Contract under which property in goods is or to be transferred in exchange for trading stamps

4) A transfer made by deed for which there is no consideration other than presumed consideration

5) A contract intended to operate by way of security.

*In any contract for the transfer of goods, terms will be implied corresponding to those implied in the case of contracts for the sale of goods.

Implied terms regarding title (s12), transfer by description (s13), quality or fitness (s14) and transfer by sample (s15)

Question 40

What are the implied terms in Supply of Goods and Services Act 1982?

Answer 40

S2(1) - right to transfer the ownership in the goods

S3 - where there is a supply of goods there is an implied term that the goods will correspond with that description

s4(2) - Where goods are supplied in the course of a business, it is an implied term that the goods will be of satisfactory quality

s4(5) - Where goods are supplied in the course of a business, and the buyer makes it known to the supplied their purpose for the goods (either expressly or impliedly) and reasonably relies on the supplier’s skill / knowledge, there is an implied term that the goods will be fit for that purpose.

s13 - Care and skill
Where the supplier is acting in the course of a business there is an implied term that the supplier will carry out the service with a reasonable care and skill.

s14 - Time of performance
Where the supplier is acting in the course of a business and the time for the service to be carried out is not fixed by the contract, left to be fixed in a manner agreed by the contract or determined by the course of dealing between the parties, there is an implied term that the supplier will carry out the service within a reasonable time.

s15 - Consideration
Where the consideration for the service is not determined by the contract, left to be determined in a manner to be agreed by the contract or determined by the course of dealing, there is an implied term that the party contracting with the supplier will pay a reasonable charge.

What is reasonable is a question of fact and will depend on the particular circumstances.

Question 41

Which of the SGSA 1982 are conditions, warranties or innominate terms?

Answer 41

S2(1), s3, s4(2), s4(5) = conditions

s13, s14, s14 = Innominate terms

Question 42

What is the position regarding contracting out terms implied under SGSA?

Answer 42

In the case of contracts of goods or hire of goods, under s11, a supplier may negative or vary the terms set out above, subject to UCTA.

In the case of contracts for the supply of services, under s16 a party may contract out of the implied terms, subject to the provisions of UCTA.

Question 43

What are the terms implied by statute into business to consumer contracts - Consumer Rights Act 2015

Answer 43

s9 - The quality of the goods is satisfactory.

s10 - The goods are reasonably fit for any particular purpose that the consumer makes known to the trader before buying the goods.

**s11 ** - The goods will match the description.

s13 - Where goods are sold by sample, the goods will match the sample.

**s14 **- Where a model is seen or examined before the goods are bought, the goods will match the model.

s15 - Correct installation is part of conformity of goods with the contract.

s16 - Items that include digital content must conform to the contract.

s49 - Services should be performed with reasonable care and skill.

s51 - If a price for work or a service has not been fixed, there is an implied term that a reasonable sum will be charged

s52 - Where work or a service is done in the course of a business and no time for performance has been agreed, it is implied that the work will be done within a reasonable time.

Question 44

Explain s9 CRA 2015?

Answer 44

Where goods are sold/supplied in the court of a business, goods will be of satisfactory quality

Question 45

Explain s13 CRA 2015?

Answer 45

Where the goods are sold by sample, the goods will match the sample.

Question 46

Explain s15 CRA 2015?

Answer 46

Correct installation is part of conformity of goods with the contract.

Question 47

Explain s16 CRA 2015?

Answer 47

Items that include digital content must conform to the contract

Question 48

Explain s49 CRA 2015?

Answer 48

Where work or a service is done in the course of a business there is an implied term that it will be carried out with reasonable care and skill.

Question 49

Explain s52 CRA 2015?

Answer 49

Where work or a service is done in the course of a business and no time for performance has been agreed, it is implied that the work will be done within a reasonable time.

Question 50

Explain s51 CRA 2015?

Answer 50

If a price for work or a service has not been fixed, there is an implied term that a reasonable sum will be charged.

Question 51

What are terms implied for contracts for digital content?

Answer 51

S34-digital content should be of satisfactory quality.
‘Satisfactory if it meets the standard that a reasonable person would consider satisfactory.’

S35-digital content should be reasonably fit for purpose

Should match any description given by the trader to the consumer.

Question 52

In a contract for service - a consumer has a right. What are the rights?

Answer 52

s49- That the service is performed with reasonable skill and care.

s51- That (where a price has not been agreed), a reasonable price is to be paid.

s52- That (where a time has not been fixed), the service is provided in a reasonable time.

s50(1)- Anything said or written to the consumer, by or on behalf of the trader, about the trader or the service is to be included as a term where it is taken into account by the consumer when deciding to enter into the contract or when making any decision about the service after entering into the contract.

Question 53

What approach does the court take for terms implied by the CRA?

Answer 53

If the words in the contract are clear, then the courts will interpret them through what they see as the viewpoint of a reasonable person without looking at the commercial context-only looks at what is written in the contract.

If the words in the contract are ambiguous or unclear , then the courts may use commercial common sense to interpret the contract.

For example, where the wording has more than one meaning and the court could interpret the words in a way that better reflects what they see as the aim of the contract, and is consistent with business common sense.

Question 54

What are the remedies available for the contracts for goods?

Answer 54

When goods fail to meet any of the requirements in s9 (satisfactory quality), s10 (reasonable fit for the particular purpose) or s11 (correspondence with description) then the goods are non-conforming.

There are 3 remedial options available to the consumer:
1) Short time right to reject
2) Right to repair or replacement
3) Right to price reduction or the final right to reject

Question 55

What is the short term right remedy under CRA?

Answer 55

Short term right to reject:

Available for 30 days from the time the ownership has passed or for hire etc, possession has been transferred, and the goods have been delivered, and in cases where installation is required or the trader needs to take some other action to enable the consumer to use the goods-the trader has notified the consumer that the required steps have been taken.

Question 56

What is the right to repair or replacement under CRA 2015?

Answer 56

Right to repair or replacement available - unless repair or replacement is impossible or disproportionate (imposes unreasonable cost on trader relative to other remedies and interests of consumer)

Question 57

When is a consumer entitled to price reduction or the final right to reject?

Answer 57

May only be exercised when
- After one repair or one replacement, goods do not conform to the contract
- Consumer can require neither repair nor replacement of the goods (impossible or disproportionate)
- Consumer has required the trader to repair or replace the goods, but the trader is in breach of the requirement to do so within a reasonable time and without significant inconvenience to the consumer.

S24(10)- General Rule : where the final right to reject is exercised within 6 months, there should be a full refund with no deduction for use (does not apply to motor vehicles or other goods that may be specified by the statutory order).

*Consumers cannot treat the contract as at an end as a result of a breach of the terms implied in 9, 10 or 11, except per the above.

Question 58

What are the remedies available for contracts for digital content?

Answer 58

S42 - Provides that, where digital content is non-conforming in breach of s34 (satisfactory quality), s35 (fit for purpose), s36 (matching description), there are two remedial options:

• Right to repair or replacement.
• Right to price reduction.

Question 59

What is the time period of digital content which does not conform to the contract?

Answer 59

Digital content - which does not conform to the contract at any time within the period of 6 months beginning with the day on which it was supplied must be taken not to have conformed to the contract at any time within the period of 6 months.

Question 60

What does the right to repair or replacement mean for contract for digital content?

Answer 60

Right to repair or replacement

Any trader must repair or replace digital content within a reasonable time and without significant inconvenience to the consumer - but not if impossible or disproportionate

Question 61

What is the right to price reduction for digital content contracts?

Answer 61

The price of reduction is only exercisable where the consumer either:

1) Cannot require replace or replacement (impossible or disproportionate)
2) Trader has failed to repair or replace digital content within a reasonable time and without significant inconvenience

Question 62

What is the right of refund for digital content contracts?

Answer 62

The consumer has right to receive a refund within 15 days.

Must be given using the same payment method, without imposing a fee

Question 63

What are the remedies for contracts for services?

Answer 63

Where the services are non-confirming in Breach of s49 (reasonable care and skill) there are two remedies available:

1) Right to require repeat performance
2) Right to price reduction

Question 64

What is the right to require a repeat performance within a reasonable time in a contract for services?

Answer 64

Right to require repeat performance:

Within a reasonable time and without significant inconvenience to consumer-consumer cannot require repeat performance if completion in conformity with contract is impossible.

Question 65

What is the right to price reduction in contract for services?

Answer 65

S56(3) - Price reduction only becomes available where repeat performance is impossible or where the trader has failed to provide repeat performance within a reasonable time and without significant inconvenience to consumer.

Where the services are non-conforming with respect to s52 (performance within a reasonable time), the remedial option is the right to a price reduction.

Question 66

Explain s14 CRA 2015?

Answer 66

Where a model is seen or examined before the goods are bought, the goods will match the model.

Question 67

Explain s10 CRA 2015?

Answer 67

Where goods are sold/supplied in course of a business, and the buyer makes known to the seller their purpose of the goods (either expressly or impliedly) and reasonably relies on the seller’s skill/knowledge - implied term that the goods will be fit for that purpose

Question 68

Explain s11 CRA 2015?

Answer 68

Where there is a sale/supply by description there is an implied term that the goods will correspond with that description