The Sale Of Goods Act 1893 /1980 (Implied Terms Into Consumer Contracts) Harvard Case Solution & Analysis

OUTLINE OF “IMPLIED TERMS” INTO CONSUMER CONTRACTS

Implied terms as to title.

26.—(1) In every hire-purchase agreement, other than one to which subsection (2) applies, there is—

  1. an implied condition on the part of the owner that he will have a right to sell the goods at the time when the property is to pass and
  2. an implied warranty that the goods are free and will remain free until the time when the property is to pass from any charge or encumbrance not disclosed to the hirer before the agreement is made. Also, the hirer will enjoy the possession of the goods as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed.

(2) In a hire-purchase agreement, in the case of which there appears from the agreement or is to be inferred from the circumstances of the agreement, an intention that the owner should transfer only such title as he or a third person may have.There is—

  1. an implied warranty that all charges known to the owner have been disclosed to the hirer before the agreement is made, and
  2. an implied warranty that neither—

                    i.            the owner, nor

                  ii.            in a case where the parties in the agreement intend that any title which may be transferred would be as a third person.Then in that case that person nor

                iii.            anyone claiming through or under the owner or that third person otherwise is the nunder a charge or encumbrance, which is disclosed to the hirer before the agreement is made will affect the hirer’s possession of goods.

(3) Nothing in this section shall prejudice the operation of any other enactment or rule of law whereby any condition or warranty is to be implied by a hire-purchase agreement.

Implied warranty for spare parts and servicing.

12.—(1) In a contract for the sale of goods, there is an implied warranty that spare parts and an adequate after sales service will be made available by the seller in such circumstances as stated in an offer, description or advertisement by the seller on behalf of the manufacturer or on his own behalf and for such period as  stated or, if no period is so stated, for a reasonable period.

(2) The Minister may, after such consultation with such interested parties as he thinks proper, by order define, in relation to any class of goods described in the order, what shall be a reasonable period for the purpose of subsection (1).

(3) Notwithstanding section 55 (1) of the Act of 1893 (inserted by section 22 of this Act) any term of a contract exempting from all or any of the provisions of this section shall be void.

Implied undertakings as to quality or fitness.

28.—(1) Except as provided by this section and subject to the provisions of any other enactment, there is no implied condition or warranty as to the quality or fitness for any particular purpose of goods under a hire-purchase agreement.

(2) Where the owner lets goods under a hire-purchase agreement in the course of a business, there is an implied condition that the goods are of merchantable quality within the meaning of section 14 (3) of the Act of 1893 as set out in the table to section 10 of this act.Except that there is no such condition—

  1. Regarding defects specifically drawn to the hirer's attention before the agreement is made, or
  2. If the hirer examines the goods before the agreement is made regarding defects in which that examination ought to have revealed.

(3) Where the owner lets goods under a hire-purchase agreement in the course of a business and the hirer, expressly or by implication, makes it known to the owner or the person by whom any antecedent negotiations (as defined in section 35) are conducted.Any particular purpose for which the goods are being hired there is an implied condition that the goods supplied under the agreement are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied.Except where the circumstances show that the hirer does not rely or that it is unreasonable for him to rely on the skill or judgment of the owner or that person.The Sale Of Goods Act 1893 1980 (Implied Terms Into Consumer Contracts) Case Solution

(4) An implied condition or warranty as to quality or to be fit for a particular purpose may be annexed to a hire-purchase agreement due to the usage...........................

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