Terms of contract(implied by statue only)

Question 1

Implied Terms

Answer 1

Terms of a contract are duties and obligations that each party assumes under their agreement.

Question 2

What are contracts for the sale of goods are covered under ?

Answer 2

Contracts for the sale of goods are covered under Sale of Goods Act 1979, as amended by the Sale and Supply of Goods Act 1994 and the Sale and Supply of Goods to Consumers Regulations 2002.

Question 3

What are the rules of s.2(1) of the 1979 Act.

Answer 3

A sale of goods contract is one by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price. Thus it applies only to goods sold for money

Question 4

What are the rules of s.12(1) of the 1979 Act.

Answer 4

A condition is implied into any contract for the sale of goods that the seller has a right to sell the goods and is able to pass good title to the buyer.

Question 5

What are the rules of s.13(1) of the 1979 Act.

Answer 5

where there is a contract for the sale of goods by description, there is an implied condition that the goods will correspond with the description.

Question 6

What are the rules of s.13(3) of the 1979 Act.

Sale by description

Answer 6

specifies that goods sold by self-selection, as in a supermarket, are included within the category of sales by description.

Question 7

Beale v Taylor 1967]s.13(1)

Answer 7

The seller advertised in good faith that he had a 1961 Triumph Herald for sale. In fact, the car was an amalgam of two Triumph Heralds, the front and back of which had been put together. Thus, only half of the case was of the 1961 vintage. The seller was liable because the car did not correspond with the contractual description. The seller in this case was a private seller, so the liability was found under section 13 rather than section 14.

Question 8

Re Moore & Co Ltd and Landauer & Co 1921s.13(1)

Answer 8

A contract for the sale of 3,100 tins of peaches described the tins as being packed in cases of 30. When they arrived the tins were packed in cases of 24 although the agreed overall number of tins was supplied. The purchaser was entitled to reject the goods as they were not as described.s.13(1)

Question 9

What are the rules of s.14(2) of the 1979 Act

Satisfactory quality s.14(2)

Answer 9

Under s.14(2), goods sold in the course of a business should be of satisfactory quality, that is if they meet the standard that a reasonable person would regard as satisfactory, taking account of description of the goods, the price and all other relevant circumstances.

Question 10

Clegg v Anderssons.14(2)

Answer 10

The buyer bought a yacht for £236,000. The yacht’s keel was heavier than expected. The court allowed his claim as it was not of a satisfactory quality given the price that had been paid. A purchaser of expensive goods was entitled to expect a high quality product, free from minor defects

Question 11

Bramhill v Edwards s.14(2)

Answer 11

The buyer measured the vehicle they bought from a dealer to be 102 inches wide, when UK law provided that vehicles must be no wider than 100 inches. The court held that they should have measured the vehicle before buying it, as they knew of the UK legislation concerning the maximum width.

Question 12

What are the rules of s.14(3) of the 1979 Act

Fitness for purpose s.14(3)

Answer 12

where the seller sells good in the course of business and the buyer makes known the purpose for which the goods are being bought, there is an implied condition that the goods supplied under the contract are reasonably fit for that purpose, except where the circumstances show that the buyer does not rely, or that it is unreasonable for him to rely on the skill of the seller.

Question 13

Griffiths v Peter Conway Ltd s.14(3)

Answer 13

A woman with sensitive skin got dermatitis from wearing a coat. She sued for breach, but failed, as she had not made known to the seller she assumed the coat would not irritate her skin.

Question 14

Preist v Last s.14(3)

Answer 14

The buyer asked for a hot water bottle and it was taken to mean it had to fit the purpose of filling water without splitting. When the bottle did split, there was a breach of the implied condition of satisfactory quality and fitness for purpose.

Question 15

What are the rules of s.15( of the 1979 Act

Correspondence with sample s.15

Answer 15

Under s.15, where goods are sold by sample, there is an implied condition that the bulk of goods will correspond with the sample, and that the goods will be free from any defect, rendering them unsatisfactory, which would not be apparent on reasonable examination of the sample.

Question 16

Remedies

Answer 16

In the case of a breach of an implied term by the Sale of Goods Act 1979, the remedies available are:

Repair
Replacement
Price reduction
Full refund

Question 17

Important to know

Answer 17

Majority of consumer protection provisions have been developed by legislation, unlike most contract law which is by the common law. There are however, reasons why statutory intervention has been needed:
1. Only higher courts are involved in developing the common law. Consumer problems rarely reach these courts.
2.Pressure groups, like Consumers’ Association, cannot directly influence court’s decisions.
As the law stands today, the Consumer Rights Act 2015 (which contains three parts; Part 1 Consumer Contracts, Part 2 Unfair Terms, Part 3 Miscellaneous) has consolidated existing consumer legislation, such as the 1979 Act etc. The government predicts that the new Act will boost economy by 4 billion pounds.