Terms 2 Flashcards
(28 cards)
What kind of contracts does SGSA govern?
Business to business
- Contracts for the transfer of property in goods
- Contracts for the hire of goods
- Contracts for the supply of services
Which two sections of SGSA are ostensibly the same as the SGA?
Transfer / hire of goods
Which section of SGSA is different
Contracts for supply of services - must be handled with ‘reasonable care and skill’.
What is excluded from a ‘contract for the transfer of goods’?
A contract of sale of goods
A hire purchase agreement
A contract under which the property in goods is / is to be transferred in exchange for trading stamps
A transfer made by deed
A contract which functions as a security
Transfer of goods: How are terms relating to title - s2, description - s3, quality or fitness - s4, or sample - s5 considered?
All implied into SGSA for transfer of goods and all considered a condition.
What is excluded from ‘the hire of goods’?
A hire purchase agreement
A contract under which goods are bailed in exchange for trading stamps
Hire of goods: How are terms relating to title - s7, description - s8, quality or fitness - s9, or sample - s10 considered?
All implied into SGSA for hire of goods, and considered a condition.
What terms are implied for a supply of services?
S13 - Reasonable care and skill
S14 - Time of performance must be reasonable
S15 - If consideration not established in advance, implied in that a reasonable charge must be paid.
What kind of contracts does the CRA govern?
Those between a trader and a consumer
When did the CRA kick in and how are pre CRA consumer - trader contracts governed?
1 October 2015; anything beforehand is governed by SGA or SGSA
What three key rights are enshrined in a consumer sale of goods?
Satisfactory quality - S9
Fit for purpose - S10
Match description - S11
What three key rights are enshrined in contracts for digital content?
Satisfactory quality - S34
Fit for purpose - S35
Description match - S36
What four key rights are enshrined in contracts for services?
Reasonable care and skill - S49
If price not agreed must be reasonable - S51
If time not fixed - reasonable time - S52
S50(1) - if anything has been written inducing the consumer to enter the contract, it is a term
What happens if goods do not satisfy S9, 10 or 11 CRA?
They are considered non-conforming: which triggers 3 remedial options
- Right to reject
- Right to repair or replacement
- Right to a price reduction, or the final right to reject
How long is the short term right to reject available?
30 days from ownership passing / delivery / service completed
When is the right to repair / replacement not available?
If impossible or disproportionate; imposing unreasonable costs
When can the remedy of price reduction or final rejection be exercised?
Goods are still non-conforming after one repair or one replacement
repair / replacement is impossible / disproportionate
Repair / replacement has not happened in a reasonable time
What is the general rule on the final right to reject?
If exercised within 6 months, no deduction for use
EXCEPT:
Motor vehicles
Any other goods that might be specified by statutory order
What remedies are available for digital content?
Right to repair or replacement
Right to price reduction [all with similar caveats]
If a consumer has a right to a refund for a digital content, when must this be paid?
Within 14 days on same payment method without a fee
What if digital content damages a device?
If damage wouldn’t have occurred if trade had exercised reasonable care and skill: consumer is entitled to repair / compensatory payment
What remedies are available if a service is non-conforming?
Right to a repeat performance
Right to a price reduction [only available if repeat performance is impossible / trader has failed to do this in a reasonable time]
What can the terms of a contract be classified as?
Conditions
Warranties
Innominate terms
Why does the difference between a condition vs a warranty matter?
Right to treat contract as repudiated + damages, vs just damages
