statutory implied terms

Question 1

what are statutory implied terms?

Question 2

what are the three genera categories off implied terms?

Answer 2

terms implies by statute: by parliment, government writing legislation

terms implies by custom and usage

terms implies by the courts

Question 3

what are terns implied by statute?

Answer 3

in contracts for the sale of goods and supply of services certain basic provisions are implied by statute in order to provide protection to purchases

put there by parliment

Question 4

is everything you buy subject to statutory legislation?

Answer 4

yes

Question 5

why are some terms implies by statute?

Answer 5

because they are core issues you shouldn’t have to negotiate they almost cannot be contracted out

Question 6

when can you get your money back?

Answer 6

we ask
does it match the description?
is it of satisfactory quality?
is it fit for purpose?

if these aren’t in place you have recompense through the law to get your money back

Question 7

what are some terms implies by statute?

Answer 7

sale of goods act 1979

supply of goods and services act 1982

consumer right act 2015

Question 8

what is supply of goods and services act 1982?

Answer 8

transactions for services between businesses (B2B)

Question 9

what is sale of goods act 1979?

Answer 9

B2B

Question 10

what is consumer right act 2015?

Answer 10

B2C made it so consumers have the same rights and businesses

Question 11

only included sales goods act and a small bit of consumer rights act

Question 12

what are key provisions of the sales of goods act?

Answer 12

S.2. SOGA specifies that a contract of sale involves the transfer, or an agreement to transfer, the property in goods from the seller to the buyer, in exchange for a money consideration, called the price

S.12 SOGA implies that the seller has a right to sell the goods.

S.13 SOGA implies a term that the goods will correspond to their description.

S.14 SOGA implies a term that the goods will be of satisfactory quality and fit for the purpose.

Question 13

what happens when breaching s13 s14?

Answer 13

any breach of an implied term s13 and s14 means you can get recompense eg if you say your going to buy something for a fiver and dont its breached as they are both treated as conditions

you can get a refund, reduction in price, repair, replacement

Question 14

what does s13 apply to?

Answer 14

it has to match the description of the advert it applies to goods that havent been seen by the buyer eg amazon, it has to exactly match the description

if you’ve seen the good they still need to be of satisfactory quality and it must till correspond to the description however if there isn’t a description then. it doesn’t have to

Question 15

what case supports the idea goods have to be of satisfactory quality even if seen?

Answer 15

Grant v Australian Knitting Mills (1936)

about: woolen underwear

point of law: even if the goods have been seen they still need to be of satisfactory quality

Question 16

for section 13 of the sales of goods act (SOGA) when does reliance on the description no longer apply?

Answer 16

if you are an expert in the field or if you bring in an expert to verify as your then relying on the expert and not the description

Question 17

what case supports the idea a decription isnt always relied upon?

Answer 17

Harlingdon and Leinster v Christopher Hull Fine Art (1990)

about: german art fake sold

point of law: there cant be a sale by description if the buyer has not relied on the sellers description

Question 18

name another case where description is not replied upon due to fitness for purpose

Answer 18

Ashinton Piggeries Ltd vs Christopher Hill Ltd (1972)

about: mink feed killing the mink

point of law: if the commercial characteristic is not being met you can still claim against the sale of goods act as its not fuffilled what the product was for

Question 19

Moore and Laundauer (1921)

Answer 19

about: tins of peaches in cases of 24 not 30 so the deal was rejected even though the same quantity was offered

point of law: goods must match the exact description so you are entitled to reject

Question 20

what happens when a retailer has the wrong description and blame the manufacturer?

Answer 20

they still must take blame as the contract is between the customer and retailer

Question 21

do you have to provide a description when selling a good?

Answer 21

no

Question 22

what does s.14 SOGA imply?

Answer 22

implies a term that the goods will be of satisfactory quality and fit for purpose

Question 23

Geddling v Marsh (1920)

Answer 23

about: bottled water injuring someone, they had not paid for the bottle but only the water inside the bottle

the judge said there was no sale of the bottle but it is still covered

point of law: all good sold under the contract are covered by the law including packaging eg if a fridge door is dented its part of the packaging as its part of the product but if the box was just dented then this cant be sued

Question 24

Wilson v Rickett Cockerill (1954)

Answer 24

about: coal and coalite

point of law: goods contaminated with another substance are unsatisfsctory s.14 even if the contaminant would be satisfactory on its own

Question 25

Wormell v RHM Agriculture (1986/7)

Answer 25

about: instruction about weed killer

point of law: unclear instructions could render what would otherwise be a satisfactory product, unsatisfactory

Question 26

what are some common issues between ss14 SOGA?

Answer 26

-packaging
-liability of the supplier is strict

Question 27

Frost v Ayelsbury Dairy Co, Ltd (1905)

Answer 27

about: mrs frost dead from milk suppplied

point of law: the liability of the supplier is strict this means that it is no defence to say that reasonable care had been excercised

Question 28

who makes the judgement if something is of satisfactory quality or not?

Answer 28

THE JUDGE

Question 29

what are the list of things the judge goes through in order to identify if a good is of satisfactory quality?

Answer 29

any description applied to the goods

defects that should have been discovered after examination

price (more pay better quality etc)

freedom from minor defects

hidden defects

durability (how long shoud it last)

Question 30

what is meant by defects that should have been discovered after examination?

Answer 30

eg if you go to buy a car and can see the front bumper is hanging off but you still buy it you cant sue as you should be able to see the defect

Question 31

Bartlett v Sydney Marcus Ltd (1965)

Answer 31

about: SM Ltd told Bartlett about clutch and oil gauge issue and offered to buy it cheaper or get it repaired he then found the clutch has a serious issue

point of law: where defect have been drawn to the buyers attention, a buyer is deemed to have accepted the goods accordingly

Question 32

Wren vs Holt (1903)

Answer 32

about: beer cotaminated

point of law: a buyer rakes goods subject to any patent defect which is or ought to have been discovered where an examination of the goods has taken place

Question 33

Brown v Craiks (1970)

Answer 33

about: sellers sold cloth for industrial use at a cheaper price even though brown wanted cloth for clothes due to miscommunication brown bought the cloth

point of law: the more you pay, the better the quality you can expect

Question 34

Rogers v Parish (Scarborough) Ltd (1987)

Answer 34

about: rogers bough range rover new and had faults so he replaced it multiple times, when he had enough and wanted to refund they refused
the judge agreed arguing not only was it bad quality but for the price the quality should be higher

point of law: the more you pay the better quality you can expect

Question 35

Jackson v Rotax motor and cycle co ltd (1910)

Answer 35

about: the goods were purchased for £450 and the cost of putting them right was £35

result: entitiled to reject he goods over quality

point of law; would the defects prevent the goods from being reasonably sold

Question 36

what do hidden defects do?

Answer 36

safety defects put goods in breach of the condition as to satisfactory quality

Question 37

Bernstein and Pamson Motors (Golders Green) Ltd (1987)

Answer 37

about: car delivered and blockage spill over after 140 miles causing £700 damages

Result: money back

point of law: hidden defect that can case safety issues is not a minor defect

Question 38

Godley v Perry (1960)

Answer 38

about: six year old boy catapult lost an eye even though he was using it properly

result: catapult was not fit for purpose as it was being used properly and still caused injury

point of law: a hidden defect that can cause a safety issue is not a minor defect

Question 39

Mash and Murrel v Emmanuel (1961)

Answer 39

about: bought potatoes from emmanuel and they were bad when they got to Mash and murrel

result: goods had to have remained durale by the time they arrived

point of law: goods should be durabe and last for a reasonable amount of time

Question 39

if a good is sold more cheaply in a budget shop is it expected to last as long as goods in an expensive shop?

Answer 39

no

Question 40

what does it mea to be fit for purpose?

Answer 40

if the buyer makes it known the purpose for buying the good, then the seller must supply it accordingly

if you didnt say anything then sellers must assume

Question 41

Manchester Liners v Rea (1922)

Answer 41

Rea sued after getting coal that wasnt powerful enough for what she intended to use it for

point of law: if the buyer makes it known the purpose for the buying good then the seller must supply it accordingly

Question 42

Preist v Last (1903)

Answer 42

about: hot water bottle scolded them when it burst

result: wasnt seen as fit for purpose as they were using it how its intended to be used anyways

point of law: where goods are to be used for their normal purpose, it is assumed that the buyer need not say anything

Question 43

M/S Aswan Engineering Establishment v Lupdine Ltd (1987)

Answer 43

about: lupdine buckets melted in sun, they knew where the buckets were being shipped to but he didnt tell the bucket manufacturer

result: buckets were generic as they didnt know what the use was

point of law: when the buyer indicates a range of (or specific) uses of the product the seller must meet the expectations

Question 44

Slater and Slater and finning (1996)

Answer 44

the claimants bought a specific camshaft for speedboat which wasnt suitable as there was a defect in the boat, they didnt ask for expertise so the seller had to assume

point of law: the buyer must reasonably rely on the skill and judgement of the seller

Question 45

Cammel Laird v Manganese Bronze Ltd (1934)

Answer 45

about: hellicopter

point of law: the buyer must reasonably rely on the skill and judgement of the seller

Question 46

what are the terms that are impotant to make the contract viable

Answer 46

The ‘officious bystander’ test to ascertain if a term (not expressly stated) is so obvious (to give effect to the intention of the parties), that it should be imputed into a contract

The ‘business efficacy’ test to introduce terms (not expressly stated) which are deemed important (in a business sense) to make a contract meaningful.

Question 46

The Moorcock (1889)

Answer 46

The claimant moored his ship at the defendant’s wharf on the river Thames.
The ship became damaged due to uneven surfaces and rocks on the river bed.
The claimant sought to claim damages from the defendant and the defendant argued that there was no provision in the contract warranting the condition of the river bed.

Ruling:
The court stated that there was an implied term that the moorings would be reasonably safe for the ship.
The court introduced the business efficacy test.

Point of Law:
If the contract makes business sense without the term, the courts will not imply a term