Statutory Terms

Question 1

What terms are implied by legislation into contracts for the sale of goods?

Answer 1

1. Title
2. Description
3. Quality
4. Fitness
5. Sample

Question 2

What is a contract for the sale of goods?

Answer 2

A contract for the sale of goods is a contract where a seller transfers or agrees to transfer the ownership of goodsto a buyer in return for a monetary price.

Question 3

What is the implied term regarding title, when will it be implied and when will it be breached?

Answer 3

In every contract for the sale of goods there is an implied promise by the seller that the seller has the right to sell those goods to the buyer. This means the seller is the owner of the goods until the buyer becomes the owner and this happens at the time of delivery. This is breached is the seller did not own the goods when they sold them.

Question 4

What is the implied term regarding description, when will it be implied and when will it be breached?

Answer 4

In every contract for the sale of goods by description there is an implied promise by the seller that the goods will match the description. If the goods do not match the description, the seller will have breached the stutory term regarding description.

Question 5

What is the implied term regarding fitness for purpose, when will it be implied and when will it be breached?

Answer 5

1. At the time the contrcact was formed the buyer expressely or by implication made the intended purpose known to the seller.
2. The buy relied upon the sellers skill and judgement
3. The seller normally deals in goods of this description.
   If these three requirements are satisfied the stautory term regarding fitness for purpose is implied into the contract.

Question 6

What is the implied term regarding merchantable quality, when will it be implied and when will it be breached?

Answer 6

This is an implied promise by the seller that the goods will be of merchantable quality.