The Sale of Goods Act 1979 Flashcards
Implied terms set out in SGA 1979 do not apply to consumer contracts as defined in the Consumer Rights Act 2015
Implied terms as to title – s 12
Section 12 provides for the implication that the seller has the right to sell the goods.
subsection 12(1) is categorised as a condition of the contract.
Correspondence with description – s13
Where there is a contract for the sale of goods by description, there is an implied term that the goods will correspond with the description
The term implied by subsection 13(1) is categorised as a condition under s13(1A).
Satisfactory quality – s14(2)
Where the seller sells goods in the course of a business, there is an implied term that the goods supplied under the contract are of satisfactory quality
According to s14(2A), the goods are of satisfactory quality if:
they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price (if relevant) and all the other relevant circumstances
Section 14(2B) provides a checklist
a) Fitness for all the purposes for which goods of the kind in question are commonly supplied;
b) Appearance and finish;
c) Freedom from minor defects;
d) Safety; and
e) Durability.
Breach of s14(2) is classified as breach of a condition by s14(6).
Fitness for a particular purpose – s14(3)
Section 14(3) states where the seller sells goods in the course of a business and the buyer, expressly or by implication, makes known to the seller
Breach of s14(3) is classified as breach of a condition by s14(6).
Sale by sample – s15
two conditions are implied into the contract by the Sale of Goods Act 1979 by virtue of s15(2)
(a) that the bulk will correspond with the sample in quality;
(b) …(repealed)
(c) that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.
Breach of s15(2) is classified as breach of a condition by s15(3).
Modification of remedies for breach of condition - s15A
Section 15A provides that if the breach is so slight that it would be unreasonable for the buyer to reject the goods and repudiate the contract, the breach should be treated as a breach of warranty, which will only entitle the buyer to claim damages.
The burden of proving that the breach is so slight and therefore unreasonable for the buyer to reject the goods falls on the seller.
Contracting out of the implied terms under the Sale of Goods Act 1979 (as amended)
Section 55 indicates that a seller’s liability under ss12, 13, 14 and 15 of the SGA 1979 can be excluded and/or restricted by agreement of the parties, subject to the Unfair Contract Terms Act 1977 (UCTA).
Under s 6(1)(a) of UCTA, the implied undertaking as to title contained in s 12 SGA 1979 cannot be excluded or restricted.
The Sale of Goods Act 1979 implies the following terms into contracts for the sale of goods:
‒ Broadly, the seller has the right to sell the goods (s.12).
‒ The goods will comply with their description (s.13).
‒ The goods will be of satisfactory quality (s.14(2)).
‒ The goods will be suitable for any purpose made known to the seller (s.14(3)).
‒ The goods will comply with any sample (s.15).
