Implied terms

Question 1

What is terms implied by statute?

Answer 1

Imply terms into all contracts for the sale and supply of goods and services to ensure a levels playing field for businesses and customers

Question 2

What is s.9(1) of the consumer rights act 2015? (terms implied by statue)

Answer 2

Every contract to supply goods includes a term that quality of goods is satisfactory

Question 3

What is s.9(2) of the consumer rights act 2015? (terms implied by statue)

Answer 3

Goods should meet the standard that a reasonable person would find satisfactory, taking into account price, description, and any other relevant circumstances

Question 4

What is s.9(3) of the consumer rights act 2015? (terms implied by statue)

Answer 4

Quality of goods includes their state and condition, as well as:
(a) fitness for all usual purposes
(b) Appearance and finish
(c) freedom from minor defects
(d) safety
(e) durability

Question 5

What is s.9(4) of the consumer rights act 2015? (terms implied by statue)

Answer 5

Where defects have been drawn to buyer’s attention, or buyer made inspection which should have uncovered defects, buyer has no claim on goods not being satisfactory quality

Question 6

What is s.10 of the consumer rights act 2015? (terms implied by statue)

Answer 6

• If consumer makes it known to trader any particular purpose for buying the goods, then there’s a term that the goods are reasonable for that purpose
• However if consumer didn’t rely on skill/judgement of trader, s.10 doesn’t apply

Question 7

What is s.11 of the consumer rights act 2015? (terms implied by statue)

Answer 7

• All contracts to supply goods by description includes a term that the goods will match the description
• Applies to samples (s.13) and models (s.14) of goods supplied before sale

Question 8

What is the remedy s.20 of the consumer rights act 2015? (terms implied by statue)

Answer 8

• Consumer has right to reject goods and treat contract as at an end within 30 days (shorter for perishable goods)
• Refund must be given within 14 days via same method of payment (unless consumer agrees otherwise)
• Reasonable costs of returning rejected goods are to be borne by the trader

Question 9

What is the remedy s.23 of the consumer rights act 2015? (terms implied by statue)

Answer 9

• Consumers can insist on repair OR replacement of faulty goods within a reasonable time and without incurring costs
• You can choose as long as one isn’t disproportionately more expensive than the other
• If fault arises within first 6mo, presumed to have been present when goods were received

Question 10

What is the remedy s.24 of the Consumer Rights Act 2015

Answer 10

Final right to have a price reduction or rejection of goods

Question 11

What is s.31 of the consumer rights act 2015? (terms implied by statue)

Answer 11

Prevents a trader from excluding or restricting any of the statutory rights/remedies relating to goods

Question 12

Contracts for the supply of services (terms implied by statue)

Answer 12

• Services provided must be performed with reasonable care and skill (s.49)
• Consumer must pay a reasonable price for the service if the price hasn’t been agreed in advance (s.51)
• If contract doesn’t fix a time, service must be provided within a reasonable time (s.52)

Question 13

Other implied terms for supply of services (terms implied by statue)

Answer 13

• Anything said or written by trader to consumer regarding trader/service will be implied term if it influences consumer’s decision to enter contract (s.50)
• If service doesn’t conform to contract, consumer entitled to require the service is properly performed if possible (s.55), consumer may be able to request reduction in price (s.56)

Question 14

what is s.57 of the consumer rights act 2015? (terms implied by statue)

Answer 14

Prevents trader excluding or restricting any statutory rights/remedies relating to services

Question 15

What is terms implied by courts?

Answer 15

Strict tests for courts implying terms on a one off basis: reflects general principle of freedom of contract (Parties free to make contracts on any terms, role of court is just to uphold promises)

Question 16

Case for terms implied by courts

Answer 16

Marks and Spencer v BNP Paribas

Question 17

What are the 2 tests, one of which must be met for a court to imply a term? (terms implied by court)

Answer 17

• Business efficacy test
• Officious bystander test

Question 18

What is the business efficacy test? (terms implied by court)

Answer 18

• Court implies a term to make contract work, provided its the intention of both parties
• Term only implied if without term the contract would lack commercial/practical coherence

Question 19

Case for business efficacy test (terms implied by court)

Answer 19

The Moorcock

Question 20

What is the officious bystander test? (terms implied by court)

Answer 20

• if while parties were making agreement and opinionated onlooker were to interrupt and suggest an express term and both parties would have replied ‘yes’
• So obvious to both parties that it goes without saying, will not be implied if parties would never have agreed to them had they thought about them

Question 21

In what case was the officious bystander test set out (terms implied by court)

Answer 21

Shirlaw v Southern Foundries

Question 22

Case for officious bystander test (terms implied by court)

Answer 22

Shell v Lostock Garage

Question 23

What is terms implied by a course of dealings? (terms implied by court)

Answer 23

Where parties have deal with each other before on standard terms/conditions, court may imply terms where its clear both sides would have those terms in mind

Question 24

Case for terms implied by a course of dealings (terms implied by court)

Answer 24

British Crane Hire v Ipswich Plant Hire