Types of Terms (Implied) (3)
3. Statutes: Parliament imply terms into contracts for the sale of goods. The Sales of Goods Act (SGA), protects the consumer and provides them with wide rights. This is because our law is governed by the principles of caveat emptor. The SGA has various sections but there are 4 main ones. Section 12, 13 and 15 imply conditions into a contract. If these are breached then it allows the claimant to repudiate and be awarded damages.
- S12: Implies a condition to the seller by passing good title to the buyer.
- S13: Implies a condition that goods match their description. But the courts have been very strict with this section.
- CASE: "Re Moore and Landauer". There was a contract for cartons of 30 tins of tinned fruit. However, some of the delivery was in cartons of 24 tins. HELD: Buyer could reject the entire agreement.
- S15: Implies conditions so long as goods can be correspond to their sample. This is rarely used as it is seen as a breach of S13. CASE: "Godley v Perry". In this case a young boy recovered compensation from the retailer, who then sued the supplier, as the catapult didn't match the sample. HELD:The claim was successful.
- S14: Is an innominate term. This section implies a term that goods are of satisfactory quality. They must be fit for purpose, safe, durable and free from defects. CASE: "Godley v Perry". Only this time the boy suffered an inury to the eye when it broke in normal use. HELD: He could recover the cost of the catapult and compensation for his resulting injuries.