Contract - terms: terms implied by statute Flashcards
What will acts depend on?
Whether the agreement is business to business or business to consumer
What is the business to consumer act?
Consumer Rights Act 2015
What is some AO3 for the intro?
CRA 2015 has similar provisions to the Sales of Goods Act 1979 and Supply of Goods Act 1982
Positive because similar rights are given in a variety of settings
Levels playing field as customers are treated same as businesses
Weaker party is given A2J
However, parties know best what they intended not judges
What are implied rights under CRA 2015?
Covers rights and remedies available for consumers making a contract with a business
Terms are not implied, instead rights are given to consumer, business has duty
What is some AO3 for CRA 2015 intro?
Traders and consumers are defined under act, makes approach consistent, upholds ROL, clear to follow
Protects consumers who may be seen as a weaker party when going against business
However judges lack flexibility
What are the types of contracts CRA 2015 applies to?
Sales
Hires
Hire-purchase
Contract for transfer of goods
Who does CRA 2015 apply to?
Contracts and notices between consumers and traders
Covers those who enter contracts for business and personal reasons
When will traders be liable?
When acting through third party
What happens if the pre-contract info is not accurate?
Trader is liable
What is some pre-contract information?
Additional delivery charges
Arrangements for paying
Telephone no/email address
Address for complaints
Total price of goods
What is some AO3 for pre-contract info?
If info isn’t accurate, trader is liable. protects customers
As info required varied by contract, confusing for consumer to be aware of what their rights are
What is S.9?
The right to satisfactory quality
What is satisfactory defined as?
When the goods meet the standard that the reasonable person would consider satisfactory
What does S.9 take into account?
Description of goods
Price
Other relevant circumstances
What is some AO3 for S.9?
Clear guidance for lay people enabling them to make educated decision whether they have the right to sue
Lessens need for extensive legal advise at start of claim
Maintains law’s aim of being transparent for all
When won’t the act apply?
If defects are drawn to attention of consumer before contract is made
Consumer examines goods before contract is made
Goods sold after inspection of a sample and defect would have been apparent
What happened in Rogers v Parish?
C bought a car which was said to be new. Was a series of defects. Seller put all defects right but buyer still wanted to repudiate contract
Car wasn’t fir for purpose so C able to reject car and claim damages
What does S.10 state?
Right of fitness for particular purpose
What contracts does S.10 apply to?
Supply of goods for a particular purpose
When consumer lets the trader know the particular purpose
What implied term applies to S.10?
Goods will be fit for purpose
When doesn’t the seller need to state the purpose of the goods?
When good are being used for their normal use
What happened in Grant v Australiam Knitting Mills?
D liable, had to pay damages
Possibility of tampering in produce was not enough for D not to be liable
What happens if puchaser has a sensitivity?
If seller unaware, D won’t be liable as long as goods are fit for normal purpose
What happened in Griffiths v Peter Conway?
C had sensitive skin and reaction to new coat. Hadn’t made seller aware of her sensitivity so not liable as good was fit for purpose they are used for normally
And if purchaser has a sensitivity, must make the seller aware of it before contract is made
What is some AO3 for S.10?
P - Makes traders liable if they have been negligent
DP - If misled, will get compensation
WDP - A2J
What does S.11 state?
Every contract is to be treated as including a term that goods will match the description
Consumer’s stautory rights must also be stated
When a model/sample of a particular good is seen by consumer, good supplied must match description of methods
What is some AO3 for S.11?
Prevents consumer from being shown an amazing ‘model’ of an item and then being given something which is completely different if they purchase
No two goods are exacelty the same with selling forums like Etsy and eBay, trader may mislead consumer unintentionally
What are some remedies for supply of goods?
Short term right to reject
Right to repair/replacement
Right to a price reduction/final right to reject
What does S.49 state?
Contracts for supply of services are treated to contain a term with regards to the traders performing task with reasonable care
Standard of care is compariable to tort of negligence, courts make decision on a case by case basis
What happened in Thake v Maurice?
Couple sued for breach when had vasectomy but still had children
Claim failed as surgeon carried out operation with reasonable care and skill
What does S.52 state?
Applies where:
If no time is specified and work has not been completed
Work has taken longer than expected
Judge decided what is reasonable based on circumstance
What does S.49 and S.52 say with the law?
Where there is no price agreed between parties, trader must be paid a reasonable sum
What is some AO3 for S.49?
Case held was fair as doctors followed correct procedure, if they were liable it could open floodgates to future claims
Unfair as couple didn’t want another child and actively sought a solution, but weren’t entitled to a remedy
What is some AO3 for S.52?
Gives judges freedom to reach the most appropriate outcome without restrictness on specific rules
Ensures parties are given most appropriate outcome for the case they’re invovled in
But it conflicts with the SoP as judges shouldn’t be writing the law
What is some remedies for S.49 and S.52?
Failure to provide the rights with respect to supply of goods and services
Right to repeat performance
Right to a price reduction
What is a conclusion AO3?
Traders have most knowledge so it ensure they aren’t able to manipulate consumers
Consumers may take advantage of this legislaton and exaggerate to claim
Questionable whether the consumer should take more accountabilitiy
Trader seems to be at a massive disadvantage when it comes to this piece of statute
