Terms of a Contract

Question 1

Terms may be implied by the courts based on local custom or trade

Answer 1

Hutton v Warren

Question 2

Terms may implied based on previous course of dealings between parties

Answer 2

Spurling J v Bradshaw

Question 3

Terms may be implied based on presumed intention of the parties

Answer 3

Consider business efficacy test - The Moorcock; or

Officious bystander test - Shirlaw v Southern Foundries)

Question 4

Terms may be implied due to type of contract

Answer 4

Liverpool City Council v Irwin

Question 5

Express terms

Answer 5

Terms specifically agreed by the parties, either orally or in writing

Question 6

Sale of Goods Act 1979 (SGA)

Answer 6

Sale of goods only

Question 7

Supply of Goods and Services Act 1982 (SGSA)

Answer 7

Use whenever there is a service as part of transaction, even if main is goods. Act covers both

Question 8

s.8 SGA

Answer 8

Reasonable price should be paid

Question 9

s.13 SGA

Answer 9

Goods must correspond with description

Question 10

For s.13 SGA, buyer must reasonably rely on description

Answer 10

Harlington & Leinster

Question 11

For s.13 SGA, it may still apply where goods have been inspected

Answer 11

Beale v Taylor

Question 12

s.14(2) SGA

Answer 12

The goods are of satisfactory quality

Question 13

s.14(3) SGA

Answer 13

Goods are reasonably fit for purpose that buyer expressly or implication makes known to the seller

Question 14

s.4 SGSA

Answer 14

Goods/service is of satisfactory quality

Question 15

s.13 SGSA

Answer 15

Supplier will carry out service with reasonable care and skill

Question 16

s.14 SGSA

Answer 16

Service will be carried out within a reasonable time

Question 17

s.15 SGSA

Answer 17

Reasonable price

Question 18

Relevant Consumer Rights Act 2015 statutes for goods

Answer 18

ss. 9-11 (only ever need to briefly mention)

Question 19

Relevant Consumer Rights Act 2015 statutes for services

Answer 19

ss.49-52 (only ever need to briefly mention)

Question 20

Remedy if term breached is a condition

Answer 20

Can terminate and sue for damages

Question 21

Implied terms that are classified as conditions

Answer 21

ss. 3-4 SGSA
s. 14 SGA
ss. 9-11 CRA

Question 22

If buyer chooses to terminate contract

Answer 22

• they are not obliged to perform further contractual duty;
• can recover money paid
• must return goods
• can sue for damages

Question 23

If buyer chooses to affirm contract

Answer 23

• they can keep the goods

- can sue for damages for any loss suffered