WS 3: Contents of a Contract - Terms Implied by Statute

Question 1

s.8 SGA

Answer 1

In the absence of an express term, a reasonable price should be paid

Question 2

s.13 SGA

Answer 2

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

• Applies to businesses AND private individuals
• Buyer and seller can be a business or private

Question 3

Harlingdon & Leinster Enterprises v Christopher Hull Fine Art [1991]

Answer 3

Court of Appeal: For s.13 to apply, buyer must reasonably rely on description. Did the buyer rely on the seller’s description and was this reasonable?
NB – can rely on mail order description or packaging

Question 4

Beale v Taylor

Answer 4

s.13 may still apply where the goods have been inspected. Defendant advertised a car for sale, describing it as a 1961 model. In fact the car was made up of two halves of different cars welded together. One half from 1961, the other was older. Sale by description even though the buyer had inspected the car

Question 5

S.14 (2) SGA

Answer 5

Where goods are sold in the course of business, there is an implied condition that the goods are of satisfactory quality

Question 6

s.14(3) SGA

Answer 6

Implied condition that the goods are of are reasonably fit for the purpose which the buyer expressly, or by implication, makes known to the seller.

Question 7

What if goods are fit for normal purposes?

Answer 7

Where the goods are fine for normal purposes, there may not be a breach of s.14(2), although there will be a breach of s.14(3) if the goods are not fit for the purpose set out by the purchaser. S.14(2B) refers to goods being fit for all purposes for which goods of that kind are commonly supplied.

Question 8

What should a purchaser ensure in order to benefit from s.14(3)

Answer 8

2. If you want to benefit from s.14(3) should make known to seller your special purpose.

Question 9

Liability for s.14(2) and s.14(3) is…

Answer 9

STRICT!

Question 10

s.3 SGSA 1982 (condition)

Answer 10

see s.13 SGA

Question 11

s.4(2) SGSA

Answer 11

see s.14(2) SGA [CONDITIONS]

Question 12

s.4(5) SGSA

Answer 12

see s.14(3) SGA [CONDITIONS]

Question 13

s.13 SGSA

Answer 13

Where the supplier of a service is acting in the course of business, the supplier will carry out the service with reasonable care and skill [TERMS]

1. Same duty of care as is owed in negligence

Question 14

s.14 SGSA

Answer 14

In the absence of an express term, service will be carried out within a reasonable time [TERM] – ONLY APPLIES IF THE CONTRACT IS SILENT

Question 15

s.15 SGSA

Answer 15

s.8 SGA

Question 16

In the Supply of Goods and Services Act 1982 which sections are relevant to goods, and which to services?

Answer 16

• NB – where the contract is to supply both goods and services, you have to consider ss.13,14 and 15 for the service and also ss.3 and 4 for the goods