Statutory Implied Terms (Notes) Flashcards
structure
definition
SOGA :
definitions - sections (2, 12, 13, 14)
remedies
s13
s14
Definition
In contracts for sale of goods and supply of services certain basic provisions are implied by statute in order to provide protection to purchasers.
This is generally done for core issues where it is seen as reasonable that such matters are automatically written into a contract
These terms almost always cannot be contracted out of
S2
transfer/agreement to transfer goods from money (consideration) – known as price.
No money, so not SOGA
a good is a tangible item you can see (not a service)
s12
implies that the seller has a right to sell the goods.
s13
implies a term that the goods will correspond to their description.
s14
implies a term that the goods will be of satisfactory quality and fit for the purpose.
s13 and s14
trated as conditions, breach lead to repudiation of contract, not just damages
remedies:
refund/reject
reduction in price
replace
repair
description s13
Applies to goods that haven’t been seen by the buyer. Even if the consumer has seen the goods, it is assumed they are relying on the description. But there must be a description
Reliance on description
Does not apply to all descriptive words (because of distinction between terms and mere representations)
Packing materials
Not exactly as described
quality s14
All goods sold under the contract (including packaging) are covered by law.
The liability of the supplier is strict. (no defence to say that reasonable care had been exercised)
s14 (2)
Deals with SATISFACTORY quality. The standard that a reasonable person would find satisfactory (not the buyer or seller).
Where defects have been brought to the attention of the buyer, a buyer is deemed to have accepted the goods accordingly.
price - the more you pay the better quality
s14 (3)
Deals with fitness for purpose.
Freedom from minor defects
Hidden Defects (Safety
Durability
fitness for purpose
purpose known - seller must supply
normal purpose - buyer need not say
range of uses - all must be met
vaguer - lower requirement of compliance
buyer must reasonably rely on knowledge and skill of seller