Terms 2 Flashcards
What kind of contracts does SGSA govern?
Business to business
- Contracts for the transfer of property in goods
- Contracts for the hire of goods
- Contracts for the supply of services
Which two sections of SGSA are ostensibly the same as the SGA?
Transfer / hire of goods
Which section of SGSA is different
Contracts for supply of services - must be handled with ‘reasonable care and skill’.
What is excluded from a ‘contract for the transfer of goods’?
A contract of sale of goods
A hire purchase agreement
A contract under which the property in goods is / is to be transferred in exchange for trading stamps
A transfer made by deed
A contract which functions as a security
Transfer of goods: How are terms relating to title - s2, description - s3, quality or fitness - s4, or sample - s5 considered?
All implied into SGSA for transfer of goods and all considered a condition.
What is excluded from ‘the hire of goods’?
A hire purchase agreement
A contract under which goods are bailed in exchange for trading stamps
Hire of goods: How are terms relating to title - s7, description - s8, quality or fitness - s9, or sample - s10 considered?
All implied into SGSA for hire of goods, and considered a condition.
What terms are implied for a supply of services?
S13 - Reasonable care and skill
S14 - Time of performance must be reasonable
S15 - If consideration not established in advance, implied in that a reasonable charge must be paid.
What kind of contracts does the CRA govern?
Those between a trader and a consumer
When did the CRA kick in and how are pre CRA consumer - trader contracts governed?
1 October 2015; anything beforehand is governed by SGA or SGSA
What three key rights are enshrined in a consumer sale of goods?
Satisfactory quality - S9
Fit for purpose - S10
Match description - S11
What three key rights are enshrined in contracts for digital content?
Satisfactory quality - S34
Fit for purpose - S35
Description match - S36
What four key rights are enshrined in contracts for services?
Reasonable care and skill - S49
If price not agreed must be reasonable - S51
If time not fixed - reasonable time - S52
S50(1) - if anything has been written inducing the consumer to enter the contract, it is a term
What happens if goods do not satisfy S9, 10 or 11 CRA?
They are considered non-conforming: which triggers 3 remedial options
- Right to reject
- Right to repair or replacement
- Right to a price reduction, or the final right to reject
How long is the short term right to reject available?
30 days from ownership passing / delivery / service completed
When is the right to repair / replacement not available?
If impossible or disproportionate; imposing unreasonable costs
When can the remedy of price reduction or final rejection be exercised?
Goods are still non-conforming after one repair or one replacement
repair / replacement is impossible / disproportionate
Repair / replacement has not happened in a reasonable time
What is the general rule on the final right to reject?
If exercised within 6 months, no deduction for use
EXCEPT:
Motor vehicles
Any other goods that might be specified by statutory order
What remedies are available for digital content?
Right to repair or replacement
Right to price reduction [all with similar caveats]
If a consumer has a right to a refund for a digital content, when must this be paid?
Within 14 days on same payment method without a fee
What if digital content damages a device?
If damage wouldn’t have occurred if trade had exercised reasonable care and skill: consumer is entitled to repair / compensatory payment
What remedies are available if a service is non-conforming?
Right to a repeat performance
Right to a price reduction [only available if repeat performance is impossible / trader has failed to do this in a reasonable time]
What can the terms of a contract be classified as?
Conditions
Warranties
Innominate terms
Why does the difference between a condition vs a warranty matter?
Right to treat contract as repudiated + damages, vs just damages
How do you judge the difference between a condition and a warranty?
Condition “goes to the root of the contract”.
Question to ask: did the parties intend, when they contracted, that any breach of the relevant term could result in the innocent party terminating?
What question should you consider an innominate term in light of?
Hong Kong Fir: “Does the breach deprive the party not in default of substantially the whole benefit which it was intended he should obtain from the contract?”
Yes - condition
No - Warranty
How is the SGSA S13 classified? [When a supplier is acting in the course of business, implied that they will carry out with reasonable care and skill]
Innominate
When can a contract be repudiated on grounds of time?
If timing is essential, a contract should contain the phrase ‘time is of the essence’
