Implied Terms

Question 1

How can terms be implied?

Answer 1

1. By statute
2. By the court, where it is so obvious to a reasonable person for business efficacy
3. By industry practice - but this can contracted out of
4. By consistent and regular dealings on the same terms

Question 2

Can parties contract out of implied terms from industry practice?

Answer 2

Yes

Question 3

Which implied terms can parties contract out of?

Answer 3

Those from industry practice, and those under the SGA or SGSA that do not relate to legal title, if they are reasonable under UCTA 1977

Question 4

What implied terms are there under SGA?

Answer 4

1. Seller’s legal title to goods
2. Goods to match description provided
3. Goods are of satisfactory quality (aka they are fit for purposes that they are generally used for)
4. Goods are fit for purposes that the buyer had made aware to the seller

Question 5

What implied terms are there under the SGSA?

Answer 5

1. Seller’s legal title to goods
2. Goods to match description provided
3. Goods are of satisfactory quality (aka they are fit for purposes that they are generally used for)
4. Goods are fit for purposes that the buyer had made aware to the seller
5. To provide services with reasonable care and skill, within a reasonable amount of time (if not contracted for) and for reasonable price (if not contracted for)

Question 6

Are the SGA and SGSA for B2B or B2C?

Answer 6

B2B

Question 7

What type of term are implied terms under the SGA?

Answer 7

Terms, but where breach is so slight that it would be unreasonable for a buyer to reject it, then it will be treated as a warranty.

Question 8

What type of term are implied terms under the SGSA?

Answer 8

Innominate Terms

Question 9

What implied terms are there under the CRA?

Answer 9

1. Seller’s legal title to goods
2. Goods to match description provided
3. Goods are of satisfactory quality (aka they are fit for purposes that they are generally used for)
4. Goods are fit for purposes that the buyer had made aware to the seller
5. To provide services with reasonable care and skill, within a reasonable amount of time (if not contracted for) and for reasonable price (if not contracted for)
6. Services to be provided in line with any information provided from the seller, that the buyer had relied on