MN10442 – topic 4 -implied terms, SoGA and CRA
Contract terms
- Express – contained In the contract – written/ oral
- Implied – by (law) statute e.g. sale of goods act 1979
By (fact) through the courts. To give business efficacy or to implement
the parties presumed intentions
By customs and usage
Sale of goods act 1979 (SoGA)
- S.2 contract of sale
o 1. A contract of sale of goods is a contract by which the seller transfers or
agrees to transfer the property in goods to the buyer for a money
consideration, called the price.
Statutory implied terms
- SoGA
o Implies terms into all contracts for the sale of goods between businesses
- The consumers rights act 2015 (CRA)
o Implies terms into all consumer contracts for the sale of goods
S(12) title
- Implied condition that the seller has the right to sell
- Implied warranty that the goods are sold free from encumbrances
- Rowland v divall (1923) – div got a car and sold it to row when div bought the car he
didn’t realise it had been stolen and he ought it of the thief and then sold it on but
then the police were looking for it and found it and repossess it. Row is upset as he
paid for it but it got taken. Div said he sold it in good faith how should he have
known. Term implied is that the title of the car owner passes with the car but this
didn’t happen and therefore a breach of the contract so he got his money back.
S(13) description
- Implied term that where goods are sold by description they will match that
description
- Harlingdon & leinster enterprises ltd v Christopher hull fine art ltd (1991)
o Two galleries one putting a painting up for auction the other with a particular
interest in the artist. Listed as genuine painting. Specialists sent to look at the
painting and agree its genuine. They go to the auction buy the painting and
then find out it’s a fake. They try suing for the description. Court held that
although it was a fake the defendant didn’t rely on the description but rather
their own specialists. Needs to be a description and reliance in the
description
Contract terms
- Express – contained In the contract – written/ oral
- Implied – by (law) statute e.g. sale of goods act 1979
By (fact) through the courts. To give business efficacy or to implement
the parties presumed intentions
By customs and usage
Sale of goods act 1979 (SoGA)
- S.2 contract of sale
o 1. A contract of sale of goods is a contract by which the seller transfers or
agrees to transfer the property in goods to the buyer for a money
consideration, called the price.
Statutory implied terms
- SoGA
o Implies terms into all contracts for the sale of goods between businesses
- The consumers rights act 2015 (CRA)
o Implies terms into all consumer contracts for the sale of goods
S(12) title
- Implied condition that the seller has the right to sell
- Implied warranty that the goods are sold free from encumbrances
- Rowland v divall (1923) – div got a car and sold it to row when div bought the car he
didn’t realise it had been stolen and he ought it of the thief and then sold it on but
then the police were looking for it and found it and repossess it. Row is upset as he
paid for it but it got taken. Div said he sold it in good faith how should he have
known. Term implied is that the title of the car owner passes with the car but this
didn’t happen and therefore a breach of the contract so he got his money back.
S(13) description
- Implied term that where goods are sold by description they will match that
description
- Harlingdon & leinster enterprises ltd v Christopher hull fine art ltd (1991)
o Two galleries one putting a painting up for auction the other with a particular
interest in the artist. Listed as genuine painting. Specialists sent to look at the
painting and agree its genuine. They go to the auction buy the painting and
then find out it’s a fake. They try suing for the description. Court held that
although it was a fake the defendant didn’t rely on the description but rather
their own specialists. Needs to be a description and reliance in the
description
