Business Organisations And Their Consumers
P1. Be able to apply the main principles affecting the legal relationship between business organisations and their consumers
P1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of goods and supply of services
Sale of good act 1979
It is contract between the parties under which one party is agree that he will transfer the goods to the buyer for consideration. There are three required conditions which are necessary for the sale of the goods. These are:
- There is consideration price.
- Goods which is transferred form the seller to the buyer.
- There is an agreement between the parties for the sale. [Saharay’, D. (2015)].
What is implied terms?
Implied terms are those terms which are used by the parties for resolving the dispute arise in the contract,the implied terms sources are:
Section 12 of the act deal with the title of the goods:
- Section 12 includes the entire contract which is related to the sale of the goods. It includes all the contract of private sales, or online shopping.
- Section 12(1) include a term in which it includes the seller right in which seller has right to sell the goods.
- Section 12 (2) (a) says that the seller has the duty to disclosed the buyer any charge or burden over the goods which is purchased by the buyer.
- Section 12 (2) (b) the buyer has the right to enjoy the possession of the property. (case- Microbeads V Vinehurst Road Marking)
- Section 13 deals with the description of the goods
- Section 13 (1) stated that if there is any contract between the parties that the good must be in accordance with this description then the goods must be according with the description.(case Harlington and Leinster V Christopher Hull Fine Art)
Section 14 deals with the quality of the goods.
- Section 14 (2) states that when the seller sell his goods to buyer then it is implied term, of contract that the goods which is sold by the seller to buyer must be in satisfactory quality.
- Section 14 (2) (a) gods which meet the standard of the reasonable person then the gods is fit and satisfactory. (Case- Stevenson V Rogers (1999).