The Supply of Goods (Implied Terms) Act 1973: Implied Terms in Hire-Purchase Agreements, Study notes of Law

Download The Supply of Goods (Implied Terms) Act 1973: Implied Terms in Hire-Purchase Agreements and more Study notes Law in PDF only on Docsity! Changes to legislation: There are currently no known outstanding effects for the Supply of Goods (Implied Terms) Act 1973. (See end of Document for details) Supply of Goods (Implied Terms) Act 1973 1973 CHAPTER 13 An Act to amend the law with respect to the terms to be implied in contracts of sale of goods and hire-purchase agreements and on the exchange of goods for trading stamps, and with respect to the terms of conditional sale agreements; and for connected purposes. [18th April 1973] Sale of Goods 1—7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 Textual Amendments F1 Ss. 1–7 repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 3 Hire-purchase agreements [F28 Implied terms as to title. (1) In every [F3relevant hire-purchase agreement], other than one to which subsection (2) below applies, there is— (a) an implied [F4term] on the part of the creditor that he will have a right to sell the goods at the time when the property is to pass; and (b) an implied [F4term] that— (i) the goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance not disclosed or known to the person to whom the goods are bailed or (in Scotland) hired before the agreement is made, and 2 Supply of Goods (Implied Terms) Act 1973 (c. 13) Document Generated: 2021-04-01 Changes to legislation: There are currently no known outstanding effects for the Supply of Goods (Implied Terms) Act 1973. (See end of Document for details) (ii) that person will enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed or known. (2) In a [F3relevant 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 creditor should transfer only such title as he or a third person may have, there is— (a) an implied [F4term] that all charges or encumbrances known to the creditor and not known to the person to whom the goods are bailed or hired have been disclosed to that person before the agreement is made; and (b) an implied [F4term] that neither— (i) the creditor; nor (ii) in a case where the parties to the agreement intend that any title which may be transferred shall be only such title as a third person may have, that person; nor (iii) anyone claiming through or under the creditor or that third person otherwise than under a charge or encumbrance disclosed or known to the person to whom the goods are bailed or hired, before the agreement is made; will disturb the quiet possession of the person to whom the goods are bailed or hired.] [F5(3) As regards England and Wales and Northern Ireland, the term implied by subsection (1)(a) above is a condition and the terms implied by subsections (1)(b), (2) (a) and (2)(b) above are warranties.] Textual Amendments F2 S. 8 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 F3 Words in Act substituted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 2; S.I. 2015/1630, art. 3(g) (with art. 6(1)) F4 Words in s. 8(1)(a)(b)(2)(a)(b) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(2)(a) (with s. 8(3)) F5 S. 8(3) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(2)(b) (with s. 8(3)) Modifications etc. (not altering text) C1 S. 8 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(1)(b), 20(1)(b) [F69 Bailing or hiring by description. (1) Where under a [F3relevant hire-purchase agreement] goods are bailed or (in Scotland) hired by description, there is an implied [F7term]that the goods will correspond with the description, and if under the agreement the goods are bailed or hired by reference to a sample as well as a description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description. [ F8(1A) As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.] (2) Goods shall not be prevented from being bailed or hired by description by reason only that, being exposed for sale, bailment or hire, they are selected by the person to whom they are bailed or hired.] Supply of Goods (Implied Terms) Act 1973 (c. 13) Document Generated: 2021-04-01 5 Changes to legislation: There are currently no known outstanding effects for the Supply of Goods (Implied Terms) Act 1973. (See end of Document for details) F15 S. 10(8) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 3(3); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Modifications etc. (not altering text) C3 S. 10 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) [F1611 Samples. [F17(1)]Where under a [F3relevant hire-purchase agreement] goods are bailed or (in Scotland) hired by reference to a sample, there is an implied [F18term]— (a) that the bulk will correspond with the sample in quality; and (b) that the person to whom the goods are bailed or hired will have a reasonable opportunity of comparing the bulk with the sample; and (c) that the goods will be free from any defect, [F19making their quality unsatisfactory], which would not be apparent on reasonable examination of the sample.] [F20(2) As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.] Textual Amendments F3 Words in Act substituted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 2; S.I. 2015/1630, art. 3(g) (with art. 6(1)) F16 S. 11 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 F17 Word in s. 11 inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch.2 para. 4(5)(a) (with s. 8(3)) F18 Word in s. 11 inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(5)(b) (with s. 8(3)) F19 Words in s. 11(1)(c) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(5)(c) (with s. 8(3)) F20 S. 11(2) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(5)(d) (with s. 8(3)) Modifications etc. (not altering text) C4 S. 11 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) [11A F21 Modification of remedies for breach of statutory condition in non-consumer cases. (1) Where in the case of a [F3relevant hire-purchase agreement]— (a) the person to whom goods are bailed would, apart from this subsection, have the right to reject them by reason of a breach on the part of the creditor of a term implied by section 9, 10 or 11(1)(a) or (c) above, but (b) the breach is so slight that it would be unreasonable for him to reject them, F22... the breach is not to be treated as a breach of condition but may be treated as a breach of warranty. (2) This section applies unless a contrary intention appears in, or is to be implied from, the agreement. (3) It is for the creditor to show— (a) that a breach fell within subsection (1)(b) above, and [F23(b) that the agreement was a relevant hire-purchase agreement.] 6 Supply of Goods (Implied Terms) Act 1973 (c. 13) Document Generated: 2021-04-01 Changes to legislation: There are currently no known outstanding effects for the Supply of Goods (Implied Terms) Act 1973. (See end of Document for details) F24(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) This section does not apply to Scotland.] Textual Amendments F3 Words in Act substituted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 2; S.I. 2015/1630, art. 3(g) (with art. 6(1)) F21 S. 11A inserted (E.W.N.I.) (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(6) (with s. 8(3)) F22 Words in s. 11A(1) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 4(2); S.I. 2015/1630, art. 3(g) (with art. 6(1)) F23 S. 11A(3)(b) substituted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 4(3); S.I. 2015/1630, art. 3(g) (with art. 6(1)) F24 S. 11A(4) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 4(4); S.I. 2015/1630, art. 3(g) (with art. 6(1)) [12 F25 Exclusion of implied terms. An express term does not negative a term implied by this Act unless inconsistent with it.] Textual Amendments F25 S. 12 substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para.4(7) (with s. 8(3)) [12A F26 Remedies for breach of [F3 relevant hire-purchase agreement ] as respects Scotland. (1) Where in a [F3relevant hire-purchase agreement] the creditor is in breach of any term of the agreement (express or implied), the person to whom the goods are hired shall be entitled— (a) to claim damages, and (b) if the breach is material, to reject any goods delivered under the agreement and treat it as repudiated. F27(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F27(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) This section applies to Scotland only.] Textual Amendments F3 Words in Act substituted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 2; S.I. 2015/1630, art. 3(g) (with art. 6(1)) F26 S. 12A inserted (s.) (3.1.1995) by 1994 c. 35, ss. 7,8(2), Sch. 2 para. 4(8) (with s. 8(3)) F27 S. 12A(2)(3) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 5; S.I. 2015/1630, art. 3(g) (with art. 6(1)); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Supply of Goods (Implied Terms) Act 1973 (c. 13) Document Generated: 2021-04-01 7 Changes to legislation: There are currently no known outstanding effects for the Supply of Goods (Implied Terms) Act 1973. (See end of Document for details) 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28 Textual Amendments F28 S. 12(2)–(9) (both as originally enacted and as substituted by Consumer Credit Act 1974 (c. 39)), and s. 13 repealed by Unfair Contract Terms Act 1977 (c. 50), Sch. 4 F29 14 Special provisions as to conditional sale agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Textual Amendments F29 S. 14 omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 6; S.I. 2015/1630, art. 3(g) (with art. 6(1)) [F3015 Supplementary. (1) In sections 8 to 14 above and this section— “ business ” includes a profession and the activities of any government department (including a Northern Ireland department), [F31 or local or public authority ] ; “ buyer ” and “ seller ” includes a person to whom rights and duties under a conditional sale agreement have passed by assignment or operation of law; F32 . . . “ conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled; [F33 “ consumer sale ”has the same meaning as in section 55 of the Sale of Goods Act 1979 (as set out in paragraph 11 of Schedule 1 to that Act) ] “ creditor ” means the person by whom the goods are bailed or (in Scotland) hired under a [F3 relevant hire-purchase agreement ] or the person to whom his rights and duties under the agreement have passed by assignment or operation of law; and “ hire-purchase agreement ” means an agreement, other than conditional sale agreement, under which— (a) goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and (b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs— (i) the exercise of an option to purchase by that person, (ii) the doing of any other specified act by any party to the agreement, (iii) the happening of any other specified event. [F34and a hire-purchase agreement is relevant if it is not a contract to which Chapter 2 of Part 1 of the Consumer Rights Act 2015 applies;] F35. . .