Terms Implied In CRA 2015

Question 1

Grant v Australian Knitting Mills Ltd

Answer 1

There was a breach of implied terms.

The court accepted that the underpants had an obvious purpose and the buyer would have impliedly made known the purpose for which he was buying them.

Question 1

Beale v Taylor

Answer 1

mixed of two cars welded together > 1961 Triumph Herald

Question 2

Lawson v Supasink Ltd

Answer 2

Breach of implied terms and claimant awarded damages under S13.

Question 3

Charnock v Liverpool Corporation

Answer 3

5 weeks > 8 weeks

Defendant was in breach of the implied term.

Question 4

CRA 2015

Answer 4

1. S12
   Pre-contract information becomes an implied term of the contract; this would include such things as terms of payment, delivery, after-sales service.
2. S2
   Key definitions:
   > Trader - S2(2)
   > Consumer S2(3)
   > Business - S2(7)
   > Goods - S2(8)
   > Digital content - S2(9)
3. S9
   Satisfactory quality
   > S9(1): every contract to supply goods is to be treated as including a term that the quality of the goods is satisfactory
   > S9(2): quality of goods is satisfactory if they meet the standard that a reasonable man would consider satisfactory, taking account of any description of the goods, the price or other consideration for the goods if relevant, and all the other relevant circumstances
   » Reflects S14(2A) SGA 1979
   »> S14(2): the goods had to be of a ‘merchantable quality’
   »> Sale and Supply of Goods Act 1994 amended S14(2) by replacing the word ‘merchantable’ with ‘satisfactory’
   »> S14(2)(A): explain ‘satisfactory’ as ‘goods of a satisfactory quality if they meet the standard that a reasonable person should regard as satisfactory, taking account of any description of the goods, the price and all other relevant circumstances’.
   > S9(3): quality of goods include their state and condition, and the following aspects are in appropriate cases aspects of the quality of goods, including fitness for all the purposes for which goods of that kind are usually supplied, appearance and finish, freedom from minor defects, safety, and durability.
   » Reflects S14(3) SGA 1979
   » The provision applies where the buyer ‘either expressly or impliedly makes known to the seller any particular purpose for which the goods are bought regardless of whether or not that is a purpose for which goods of that kind are commonly supplied’
   » Mainly used where the buyer is relying on the expertise of the seller.
   » If the seller freely agress to sell for that purpose, then there is a clear breach if the goods are inadequate for the purpose.
   » It can apply to things that are not implicit in the contract but should have been obvious.
   > S9(4): the term mentioned in SS(1) does not include anything which makes the quality of the goods unsatisfactory
   » Which is specifically drawn to the consumer’s attention before the contract is made
   » Where the consumer examines the goods before the contract is amde, which that examination ought to reveal,
   » In the case of a contract to supply goods by sample, which would have been apparent on a reasonable examination of the sample
   » Reflects S14(2C) SGA 1979
4. S10
   Goods to be fit for a particular purpose
   > S10(1): SS(3) applies to a contract to supply goods, if before the contract is made the consumer makes known to the trader expressly or impliedly any particular purpose for which the consumer is contracting for the goods
   > S10(3): the contract is to be treated as including a term that the goods are reasonably fit for that purpose, whether or not that is a purpose for which goods of that kind are usually supplied
   > S10(4): SS(3) does not apply if the circumstances show that the consumer does not rely, or it is unreasonable for the consumer to rely, on the skill or judgement of the trader or credit-broker
   > Reflects S14(3) SGA 1979
5. S11
   Goods to be as described
   > Corresponds with S13 SGA 1979: implies a term that the goods must correspond to the description applied to them by the seller.
   > Applies even where the buyer actually sees and selects the goods.
6. S20 and S22
   > If the goods do not meet requirements, the consumer has a short-term right to reject the goods within 30 days, unless the expected shelf-life of the goods is shorter.
   > Trader cannot impose any fee on the refund.
   > The refund must be made within 14 days after agreement to refund.
7. S23
   > Consumers have the right to request that faulty or not-as-described goods are repaired or replaced, even after the 30-day right to reject period has expired.
8. S20 and S24
   > Consumers have the right to a reduction in the price or to finally reject the goods after one unsuccessful repair or replacement.
9. CRA replaces Supply of Goods and Services Act 1982
   S49: imply into every contract for supply of services that the service must be performed with reasonable skill and care
   S51: imply into every contract for supply of services that the price for the service will be reasonable if not agreed
   S52: imply to every contract for suppky of services that the service will be performed within a reasonable period if not agreed

Question 5

Suppky of Goods and Services Act 1982

Answer 5

1. S13: where there is supply of services in the course of business, it is implied that the supplier will carry out those services with reasonable skill and care. The supplier must be competent and professional.
2. S14: where the contract has provided no time for the service, then the service should be carried out within a reasonable time.
3. S15: there is an implied term that the party will pay a reasonable price where no price is fixed.
4. S55: where a trader has failed to provide a service wuth reasonable skill and care, or it does not conform to precontractual statements it has made, the consumer can require the trader to perform the service again to complete it correctly.
5. S56: consumers may also claim a price reduction of up to 100 per cent in certain circumstances, depending on how serious the breach was.