SGA 1979, SGSA 1982, CRA 2015 key sections PDF

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Key sections from the sale of goods act, supply of good and services act and the consumer rights act...

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Sale of Goods Act 1979 key sections. The Act applies to contracts where property in 'goods' is transferred or agreed to be transferred for a monetary consideration,[2] in other words: where property (ownership) in personal chattels is sold. S12 – Provides for the implication that the seller has the right to sell the goods. S12(1) – term implied the subsection is categorised as a condition of the contract. S13(1) – Where goods are described as having certain characteristics and specifications then they must correspond with that description – ‘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.’ S13(1a) – the term implied in S13(1) is a condition of the contract. 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.’ S14 (2a) – goods are of a satisfactory quality if: ‘they meet the standard that a reasonable person would regard as satisfactory, taking account for any description of the goods, the price (if relevant) and all the other relevant circumstances.’ S14 (2b) – provides a checklist of what may be taken into account in assessing whether the goods are of satisfactory quality: - Fitness for all the purposes for which goods of the kind in question are commonly supplied; - Appearance and finish; - Freedom from minor defects; - Safety; and - Durability. S14(2c) - exceptions to the implied term as to satisfactory quality. ‘The term implied by subsection (2) above does not extend to any matter making the quality of goods unsatisfactory— a) (a)which is specifically drawn to the buyer’s attention before the contract is made, b) (b)where the buyer examines the goods before the contract is made, which that examination ought to reveal, or c) (c)in the case of a contract for sale by sample, which would have been apparent on a reasonable examination of the sample. S14(3) - fit for particular purpose the purchaser has expressly or impliedly made known. ‘any particular purpose for which the goods are being bought, there is an implied term that the goods supplied under the contract are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the buyer does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the seller or credit-broker’. S14(6) – classifies a breach of s14(2) and s14(3) as a breach of a condition. S15 - bulk of the goods must correspond with the sample. S15(2) - two conditions are implied into the contract by the Sale of Goods Act 1979: - (a) that the bulk will correspond with the sample in quality - (b) … - (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 S15(3) – classifies a breach of s15(2) as a breach of condition. S15(A) - 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.

S15(a)(3)The burden of proving that the breach is so slight and therefore unreasonable for the buyer to reject the goods falls on the seller. S55 - 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). Unfair Contract Terms Act 1977 S6(1a) – the implied undertaking as to title contained in s 12 SGA 1979 cannot be excluded or restricted. the implied undertakings as to description, quality, fitness for purpose or sample contained in ss13, 14, 15 of the Sale of Goods Act 1979 can be excluded / restricted subject to the requirement of reasonableness.

Key sections of Supply of Goods and Services Act 1982 Contracts for the transfer of property goods: Act also applies to contracts for the hire of goods. S1 – 'contract for the transfer of goods' means a contract under which one person transfers or agrees to transfer to another the property in goods (broadly, these are contracts where ownership of the goods changes hands) other than any of the following: - A contract of sale of goods. - A hire purchase agreement. - A contract under which the property in goods is or is to be transferred in exchange for trading stamps. - A transfer made by deed for which there is no consideration other than presumed consideration; and - A contract intended to operate by way of security. S2 – implied terms regarding title. S3 – implied terms regarding where transfer is by description. S4 – implied terms about quality or fitness. S5 – implied terms where transfer is by sample. (Corresponds with Sale of Goods Act 1979 – in regard to implied as conditions in s13, s14, s15) Contracts for the hire of goods S6 – 'contract for the hire of goods' means a contract under which one person bails or agrees to bail goods to another by way of hire (broadly, this means contracts where party A owns the goods, but party B voluntarily has possession of the goods – this is what happens in a common hire arrangement) other than any of the following: - A hire purchase agreement; and - A contract under which goods are bailed in exchange for trading stamps. S7 - implied terms about the right to transfer possession S8 - implied terms where hire is by description S9 - implied terms about quality or fitness S10 - implied terms where hire is by sample (Corresponds with Sale of Goods Act 1979 – in regard to implied as conditions in s13, s14, s15) Contracts for the supply of services. S13 – implied terms where the supplier is acting in the course of a business there is an implied term that the supplier will carry out the service with a reasonable care and skill. S14 – where the supplier is acting in the course of a business and the time for the service to be carried out is not fixed by the contract, left to be fixed in a manner agreed by the contract or determined by the course of dealing between the parties, there is an implied term that the supplier will carry out the service within a reasonable time. S15 - where the consideration for the service is not determined by the contract, left to be determined in a manner to be agreed by the contract or determined by the course of dealing between the parties, there is an implied term that the party contracting with the supplier will pay a reasonable charge S16 - a party may contract out of the implied terms set out above, subject to the provisions of UCTA. S1(2)(a) - The Supply of Goods and Services Act 1982 does not apply to contracts of sale of goods

S11 - a supplier may negative or vary the terms set out in this element, subject to the provisions of the Unfair Contract Terms Act 1977 (UCTA). UCTA 1977 - the implied undertaking as to title cannot be excluded or restricted. the implied undertakings as to description, quality, fitness for purpose or sample can be excluded / restricted subject to the requirement of reasonableness

Key sections of Consumer Rights Act 2015.

The Consumer Rights Act 2015 comprises three Parts. - Part 1 – deals with consumer contracts for goods, digital content, and services - Act applies to contracts to supply goods, digital content or services between a trader and a consume. Not between business to business. - Part II – regulates unfair terms (in consumer contracts). - Part III – is of a miscellaneous and general nature. Part 1: S1(1) – states the Act regulates agreements between a trader and a consumer. S2(2), S2(3) – define a trader and consumer: - A 'consumer' is defined as 'an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession'. - A 'trader' is defined as 'a person acting for purposes relating to that person's trade, business, craft or profession, whether acting personally or through another person acting in the trader's name or on the trader's behalf'. S2(4) - provides that, where a trader claims that an individual was not acting for purposes wholly or mainly outside the individual's trade, business, craft or profession, then it is for the trader to prove it. Contracts for goods: S9 - Goods should be of a satisfactory quality S10 - Goods should be reasonably fit for any purpose which the consumer makes known to the trader that the consumer intends to use the goods for S11 - Where goods are sold by description the goods should match that description Remedies: The Consumer Rights Act 2015 provides that where goods sold to a consumer fail to meet any of the requirements in s 9, s 10 or s 11 then the goods are regarded as non-conforming. Where the goods are non-conforming, there are three remedial options available to the consumer, namely: - The short term right to reject – s22 - The right to repair or replacement – s23 - The right to a price reduction or the final right to reject – s24, s24(10) Consumers cannot treat the contract as at an end as a result of a breach of a term implied by ss 9, 10 or 11. The implied terms are neither condition or warranties – the extent to which breach gives rise to a right to treat the contract as at an end is set out in the Act. Contracts for digital content: S34 - Should be of satisfactory quality S34(2) - 'quality of digital content is satisfactory if it meets the standard that a reasonable person would consider satisfactory' S34(2) (c) - Such a reasonable person would take account of matters of description and price together with 'all other relevant circumstances'

S34(5) - circumstances including 'any public statement about the specific characteristics of the digital content made by the trader, the producer or any representative of the trader or producer' S35 - Should be reasonably fit for purpose S36 - Should match any description of it given by the trader to the consumer Remedies: S42 - where the digital content is non-conforming in breach of the terms implied by ss 34 (satisfactory quality), 35 (fitness for purpose) and/or 36 (matching description), there are two remedial options available to the consumer, namely: o The right to repair or replacement; and o The right to price reduction. S42(9) - that 'digital content which does not conform to the contract at any time within the period of six months beginning with the day on which it was supplied must be taken not to have conformed to the contract when it was supplied.' S43 - qualifies the right to repair or replacement in the way that we have seen already in relation to contracts for goods S43(2)(a) - requires the trader to repair or replace the digital content 'within a reasonable time and without significant inconvenience to the consumer' S43(3) precludes the consumer from requiring repair or replacement where this would be impossible or disproportionate S43(5) - identifies the nature of the digital content together with the purpose for which the digital content was obtained or accessed as material to judging 'what is a reasonable time or significant inconvenience'. S44 - qualifies the right to price reduction, this right being exercisable only where the consumer either cannot require repair or replacement (because this is impossible or it would be disproportionate) or where the trader has failed to repair or replace the digital content within a reasonable time and without significant inconvenience to the consumer. S45 - gives the consumer the right to receive a refund of all money pay for the digital content. A refund must be given within 14 days. The trader must give a refund using the same payment method that the consumer used to pay for the digital content, without imposing any fee in respect of the refund. S46 – the consumer is entitled to repair or to a compensatory payment where: a) a trader supplies digital content to a consumer under a contract, b) the digital content causes damage to a device or to other digital content, c) the device or digital content that is damaged belongs to the consumer, and d) the damage is of a kind that would not have occurred if the trader had exercised reasonable care and skill, Contracts for services: S49 - That the service is performed with reasonable care and skill S50(1) - provides that anything that is said or written to the consumer by or on behalf of the trader, about the trader or the service is to be included as a term where it is taken into account by the consumer: o (a) when deciding to enter into the contract or

o

(b) when making any decision about the service after entering into the contract.

S51 - That (where a price has not been agreed) a reasonable price is to be paid S52 - That (where a time has not been fixed) the service is provided in a reasonable time Remedies: S54 - where the services are non-conforming in breach of the term implied by ss 49 (reasonable care and skill), there are two remedial options available to the consumer, namely: - The right to require repeat performance; and - The right to a price reduction. S55(2)(a) - requires the supplier to provide the repeat performance within a reasonable time and without significant inconvenience to the consumer SS52 - Where the services are non-conforming in breach of the term implied by s52 (performance within a reasonable time) the remedial option is the right to a price reduction. S55(3) - states that the consumer cannot require repeat performance if completion in conformity with the contract is impossible. S55(4) - offering the usual guidance on what, for this purpose, is reasonable and significant S56(3) - a price reduction becomes available only where repeat performance is impossible or where the trader has failed to provide repeat performance within a reasonable time and without significant inconvenience to the consumer...