Notes - Statutory Implied Terms Flashcards
What does the sale of goods act offer protection of?
Seller must have the right to sell the goods (s12)
Goods sold by description must match it (s13)
Goods must be of a satisfactory quality (s14)
Goods sold by sample must match the sample (s15)
What does the sale of goods act apply to?
All contracts for the sale of goods however s14 only applies to goods sold in the course of business.
What does s12(a) sale of goods act deal with?
Implies goods are free from any undisclosed charge (hire purchase). This is only a warranty so can only claim damages not repudiate the contract.
What does s12(b) sale of goods act deal with?
Implies the purchaser will enjoy quiet possession of the goods.
What does s13(1) of the sale of goods act deal with?
The goods will correspond with the description but only applies for sales by description not the quality, and does not apply if the seller sees them before they are purchased (Christopher Hull Fine Art). This is a condition in consumer contracts and an innominate term in commercial contracts.
What does s14(2)(a) sale of goods act deal with?
That the goods are of a satisfactory quality taking into account the description and price.
What does s14(2)(b) sale of goods act deal with?
The goods should be fit for purpose, free from minor defects, safe, durable and have a good appearance and finish.
In addition to s14 guidance what tests to do the courts apply to help determine if they are of satisfactory quality?
Acceptability test and usability test.
What is the acceptability test?
It applies to consumer transactions, it looks at whether the reasonable purchaser would have accepted the goods at the same price had they known of the defect (Shine).
What is the usability test?
Applies to business to business transactions. Could the reasonable purchaser have used the goods for the purposes for which they were commonly supplied.
What does s15 sale of goods act deal with?
It implies the bulk will correspond with the sample in quality and be free from defect. Condition in consumer contracts, innominate term in non consumer contracts.
What does s12 of the supply of goods and services act deal with?
It defines contracts for the supply of services.
What does s13 supply of goods and service act deal with?
The services will be carried out with reasonable skill and care.
What does s14 supply of goods and services act deal with?
Implies if no time limit is specified it will be carried out within a reasonable time.
What does s15 of supply of goods and services act deal with?
If no price is specified it will be a reasonable charge.
