Statutory Implied Terms and Remedies Flashcards
What implied terms the SGA imply into contract of sale of goods?
- sellers right to sell goods s.12(1)
- the goods being free from encumbrances +buyer enjoying quiet possession of them s12.(2) SGA
- description of goods s13.(1) SGA
- quality of the goods s.14(2) SGA
- goods being fit for purpose s.14(3)
- sales by sample s.15 SGA
Only when do the terms implied by s.14(2) and s.14(3) also apply? (quality of goods and goods being fit for purpose)
Only in cases where seller sells goods in course of business. Where he doesn’t do this, s12, s13 and s15 apply.
Where CRA 2015 applies what is looked at?
Statutory RIGHTS that are to be treated as included in contract b/w trader and consumer.
It is known that the law classifies terms according to their importance.
What are the 3 classifications of a term?
- condition
- warranty
- innominate term
Note- terms implied by SGA have been classified as condition/ warranty, no room for them to be an innominate term.
What are the implied terms as to title in the SGA?
- Condition that the seller has the right to sell the goods s12.(1)
- warranty that the goods are free from charges or encumbrances s12(2)(a)
- warranty that the buyer will enjoy quite possession of the goods s12(3)(b)
Why is s12(1) the most important implied term in the SGA?
It imposes a duty on the seller to pass a good title to the goods.
Note- it is not required that seller is the owner, and isn’t required to acquire title before transferring goods to the buyer. (Karlshamns v Eastport)
What happens when a finder with a possessory title fails to disclose this title?
Possessory title - person who finds goods
When in failure to disclose this title, they are in breach of s12 SGA.
What happens when a finder with a possessory title discloses this title as his true title?
Then is protected by s12(3) + s12(5) which provide:
where it appears from contract/ to be inferred from circumstances that there is intention that seller should transfer only such title as he (or third person) have, then there exists an implied warranty that none of the following persons will disturb the buyers quiet possession of goods + that seller will not be in breach of s12(1).
What will a breach of s12(1) (being a condition) result in and what is this subject to?
will entitle innocent party to treat contract as ended.
Subject to: s11(4) - that in case of contract of sale of goods, buyer cannot terminate for breach of condition once he has accepted goods and can only generally bring an action for damages for breach of warranty.
