Terms of a Contract Flashcards
Terms may be implied by the courts based on local custom or trade
Hutton v Warren
Terms may implied based on previous course of dealings between parties
Spurling J v Bradshaw
Terms may be implied based on presumed intention of the parties
Consider business efficacy test - The Moorcock; or
Officious bystander test - Shirlaw v Southern Foundries)
Terms may be implied due to type of contract
Liverpool City Council v Irwin
Express terms
Terms specifically agreed by the parties, either orally or in writing
Sale of Goods Act 1979 (SGA)
Sale of goods only
Supply of Goods and Services Act 1982 (SGSA)
Use whenever there is a service as part of transaction, even if main is goods. Act covers both
s.8 SGA
Reasonable price should be paid
s.13 SGA
Goods must correspond with description
For s.13 SGA, buyer must reasonably rely on description
Harlington & Leinster
For s.13 SGA, it may still apply where goods have been inspected
Beale v Taylor
s.14(2) SGA
The goods are of satisfactory quality
s.14(3) SGA
Goods are reasonably fit for purpose that buyer expressly or implication makes known to the seller
s.4 SGSA
Goods/service is of satisfactory quality
s.13 SGSA
Supplier will carry out service with reasonable care and skill
s.14 SGSA
Service will be carried out within a reasonable time
s.15 SGSA
Reasonable price
Relevant Consumer Rights Act 2015 statutes for goods
ss. 9-11 (only ever need to briefly mention)
Relevant Consumer Rights Act 2015 statutes for services
ss.49-52 (only ever need to briefly mention)
Remedy if term breached is a condition
Can terminate and sue for damages
Implied terms that are classified as conditions
ss. 3-4 SGSA
s. 14 SGA
ss. 9-11 CRA
If buyer chooses to terminate contract
- they are not obliged to perform further contractual duty;
- can recover money paid
- must return goods
- can sue for damages
If buyer chooses to affirm contract
- they can keep the goods
- can sue for damages for any loss suffered
