Terms: Implied by Statute

[Flash Card 1 of 4]

Sale of Goods Act 1979 (SGA 1979)

Section 8: prices

• S8(1): if not fixed by contract / S8(2): must be reasonable price / S8(3): question of fact

Section 14: satisfactory quality & fitness for purpose

• S14(2): if seller business / must be satisfactory quality
• S14(2A): satisfactory if reasonable person would regard as satisfactory / taking account: description, price & all other relevant circumstances
• S14(2B): quality: state & condition / (a) fitness for all purposes goods commonly supplied for / (b) appearance & finish / (c) freedom from minor defects / (d) safety / (e) durability
• S14(2C): not unsatisfactory: (a) specifically drawn to buyer's attention before sale / (b) buyer examines & ought to reveal / (c) apparent on reasonable examination of sample
• S14(3): if seller business / buyer makes known particular purpose / condition that goods supplied are reasonably fit for that purpose / except : not reasonable for buyer to rely on seller's skill or judgement
• strict liability : breach S14(2) & S14(3) / fault irrelevant

Section 13: sale of goods by description

• S13(1): goods will correspond with description / condition (S13(1A)) / strict liability
• S13(2): by sample: insufficient correspond with sample if not correspond with description
• S13(3): not prevented from being sale by description if selected by buyer
• P bought fake painting from D / catalogue: Munter / P German art expert & D not / P sent expert to inspect / not sale by description no S13 claim (Harlingdon & Leinster Enterprises v Christopher Hull Fine Art [1990])

bits of law

Terms: Implied by Statute

[Flash Card 2 of 4]

Sale of Goods Act 1979 (SGA 1979)

Remedies

• general rule: buyer can terminate contract & reject goods / if breach (even minor) of conditions implied by S13 or S14
• if buyer returns goods: entitled refund / not obliged to perform any duties under contract / & may sue for damages
• alternatively: buyer may affirm contract / keep goods / & sue for damages for any loss suffered

Exceptions right to reject goods & recover money

• S15A(1) : non-consumer no right to reject goods for breach S13 or S14 if so slight is unreasonable / seller must show unreasonable (S15A(3)) / breach of warranty (can only sue for damages)
• S11(4): if buyer has accepted goods / breach of S13 or S14 is breach of warranty
• S35(1): accepted goods if kept beyond reasonable time without intimating rejection / question of fact
• S11 applies to both consumer & business buyers / breach of warranty (can only sue for damages)

Additional consumer rights

• Sale and Supply of Goods to Consumers Regulations 2002 inserts S48 into SGA 1979
• S48A: goods not conform to contact within six months of delivery / rebuttable presumption of nonconformity (presumed goods did not conform at purchase unless seller can prove otherwise)
• previously buyer had to prove on balance of probabilities goods did not conform at time of purchase
• S48B(1): buyer may require seller to (a) repair or (b) replace goods
• S48B(2): seller must (a) repair or replace within reasonable time (b) bear costs (labour, materials or postage)
• S48B(3): buyer must not require seller to repair or replace if impossible or disproportionate
• S48C: if repair or replacement not available or seller not repaired or replaced within reasonable time / buyer may terminate contract (seller may reduce reimbursement taking into account use buyer has made of goods)

bits of law

Terms: Implied by Statute

[Flash Card 3 of 4]

Supply of Goods and Services Act 1982 (SGSA 1982)

Sections 13, 14 and 15: services

• S13: where supplier is business / will carry out service with reasonable care & skill
• S14(1): if not expressly provided for in contract / supplier will carry out service within reasonable time / S14(2): question of fact
• S15(1): if not expressly provided for in contract / consideration (price) will be reasonable charge / S15(2): question of fact
• if supplier not carry out service with reasonable care and skill: breach term implied by S13 & will amount to negligent breach of contract

Sections 3 and 4: services and goods

• S3(1): goods sold by description / S3(2): implied condition will correspond with description
• S3(3): if sale by sample & by description: insufficient for bulk of goods to correspond with sample / if not also correspond with description
• S3(4): not prevented from being sale by description if selected by buyer
• S4(2): goods supplied in course of business / implied condition goods of satisfactory quality
• S4(2A): satisfactory quality: reasonable person would regard satisfactory / taking account: description, price & all relevant circumstances
• S4(5): fit for purpose buyer makes known
• S3 & S4 apply in addition to S13, 14 & 15 / if goods & service are supplied

bits of law

Terms: Implied by Statute

[Flash Card 4 of 4]

Supply of Goods and Services Act 1982 (SGSA 1982)

Remedies

• remedies for breach of S3 & S4 / same for breach of S13 & S14 SGA 1979
• consumer & non-consumer can terminate / & claim damages for breach of a condition
• additionally consumer has remedies of repair or replacement / if not possible price reduction or termination
• non-consumer may not reject goods for breach S3 & S4 / if so slight would be unreasonable
• for breach S13 SGSA 1982 / buyer may be able to sue under negligence / but likely to claim under contract due to strict liability

bits of law