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Effect on Contract Terms of the Sale of Goods Act 1979

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Contract terms of the Sale of Goods Act.
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  David Ndhlovu Prepare a report on the effect on contract terms of The Sale of Goods Act 1979 & The Supply of Goods act Services Act 1982 “The  Sale of Goods Act 1979 (c 54) is an Act of the Parliament of the United Kingdom which regulates English contract law and UK commercial law in respect of goods that are sold and bought. ” ( Wikipedia) The Sale of Goods Act 1979 implies certain terms into contracts for the sale of goods that will protect the consumer in instances such as faulty goods (A2 AQA Law Second Edition). The Act is divided into sections which aim to cover most possible situations. Quite similarly there is another Act parliament has put in place in order to  protect those who supply materials needed in order for the business or service to function and this is called the Supply of Goods Act 1982. S 2(1) of the Sale of Goods Act 1979 defines the sale of goods act as ‘a contract by which a seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price’ (AQA A2 Law). Moving onto the most vital parts of the act is S13 which states that when goods are sold, there is an implied condition that the item(s) must match the description provided by the seller, even if the buyer themselves examines the item and decides to make a purchase S13 still applies. This implied term about description is a condition, so a breach in the contract allows the buyer to terminate or claim for damages and is also implied into all contracts regardless of whether the sale is intended to be private or commercial. (AQA A2 Law). A case which illustrates the law on the Act is that of Beale V Taylor where the seller advertised a car as ‘Herald convertible white 1961’ however it was later revealed that the car was falsely advertised and was in fact simply two cars welded together and the only the back half was a 1961 model. As this did not correspond with the seller’s description, the buyer was able to reject the  proposal and or claim damages. However a case which might reflect the  potential harshness of the act is Re Moore & Co. V Landauer & Co where S13 was applied strictly; in this case tinned fruits were described as consisting of 30 tins in each case, some cases had 24 tins and although the seller had still received the right number of tins in total the seller had been in breach of S13 which enabled the buyer to repudiate or claim damages. (AQA A2 Law) Due to the rigidness and unfairness people may experience - The Sale and Supply of Goods Act 1994 created a new s15(a) so that a breach of the implied term will  David Ndhlovu be treated as solely a breach of warranty only if the buyer is a business and the breach is so small it would be ridiculous for the buyer to repudiate the contract. So this enables the buyer to claim damages only and does not give permission to terminate the contract. S3 of the Supply of Goods Act 1982 is very similar to S13 of the Sale of Goods  Act as it employs the rule that whenever a party agrees with another for the supply of a service including the transfer of ownership goods, there is an implied condition that the goods must match the description provided by the  party, however it differs from S13 as S3 is effective for all contracts not just those made between consumer and a business (AQA A2 Law) For example if  Andrew a kitchen fitter had agreed with his customer David that he’d use reclaimed tiles but had in fact used new tiles, David would be able to claim for breach of condition of the contract as the goods transferred do not match the description. S14 (2) states that if the goods are sold in the course of a business, there is an implied condition that the goods will be of satisfactory quality, the quality of goods includes their state and condition which the court will consider. Satisfactory quality is defined as ‘goods that meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods’ (AQA A2 LAW) A case which illustrates S14 (2) quite clearly is Crowther v Shannon Motor Co in which the car in question had covered at least 82,000 miles at purchased and then after another 2,300 miles the engine had broke. Court had reached the conclusion that such a car should reach 100,000 miles as it failed to it means there was a breach of S14 (2) due to the fact the car was sold close to the point of failure (AQA A2 LAW). S4 of the Supply of Goods and Services Act 1982 is also very similar to S14 (2) in the sense that if one party agrees with another for the supply of a service (including transfer of ownership goods) there is an implied condition that the goods are also of satisfactory quality and eligible for their purpose. S13 of the Supply of Goods and Services Act 1982 states: In the contract for the supply of service where the supplier is acting in the course of a business there is an implied term that the party supplying the service of goods will carry out the service with reasonable care and skill. For example in Thake v Maurice (1986) a surgeon who had undertaken an operation (vasectomy) which proved to be  David Ndhlovu unsuccessful was not liable under S13 as he had taken reasonable care and skill (AQA A2 Law). It should be noted that the patient in this case could’ve entered a contract with the surgeon containing an express term confirming a successful operation, if this contract had been agreed the patient would’ve succeeded. S14 of the Supply of Goods Act states that a service which is supplied in the course of a business, there is an implied term that the supplier will carry out the service within a reasonable time. This statute acts as an aid for customers where there hasn’t been a specific term in the contract regarding the time which the service will be completed by and the service has not been completed or taken much longer than expected. (A2 AQA Law)
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