Product Liability: Law and Insurance
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APPENDIX II
Contracts to which Act applies
1.—(1) This Act applies to contracts of sale of goods made on or after (but not to those made before) 1 January 1894. (2) In relation to contracts made on certain dates, this Act applies subject to the modification of certain of its sections as mentioned in Schedule 1 below. (3) Any such modification is indicated in the section concerned by a reference to Schedule 1 below. (4) Accordingly, where a section does not contain such a reference, this Act applies in relation to the contract concerned without such modification of the section.How contract of sale is made
4.—(1) Subject to this and any other Act, a contract of sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties. (2) Nothing in this section affects the law relating to corporations.Stipulations about time
10.—(1) Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not of the essence of a contract of sale. (2) Whether any other stipulation as to time is or is not of the essence of the contract depends on the terms of the contract. (3) In a contract of sale “month”prima facie means calendar month.When condition to be treated as warranty
11.—(1) (Applies to Scotland only) (2) Where a contract of sale is subject to a condition to be fulfilled by the seller, the buyer may waive the condition, or may elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated. (3) Whether a stipulation in a contract of sale is a condition, the breach of which may give rise to a right to treat the contract as repudiated, or a warranty, the breach of which may give rise to a claim for damages but not to a right to reject the goods and treat the contract asPage 164
Implied terms about title, etc
12.—(1) In a contract of sale, other than one to which subsection (3) below applies, there is an implied [term] on the part of the seller that in the case of a sale he has a right to sell the goods, and in the case of an agreement to sell he will have such a right at the time when the property is to pass. (2) In a contract of sale, other than one to which subsection (3) below applies, there is also an implied [term] that—- (a) 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 buyer before the contract is made; and
- (b) the buyer will enjoy quiet possession of the goods except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance so disclosed or known.
- (a) the seller;
- (b) in a case where the parties to the contract intend that the seller should transfer only such title as a third person may have, that person;
- (c) anyone claiming through or under the seller or that third person otherwise than under a charge or encumbrance disclosed or known to the buyer before the contract is made.
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Sale by description
13.—(1) Where there is a contract for the sale of goods by description, there is an implied [term] that the goods will correspond with the description. [(1A) As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.] (2) If the sale is by sample as well as by 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. (3) A sale of goods is not prevented from being a sale by description by reason only that, being exposed for sale or hire, they are selected by the buyer. (4) Paragraph 4 of Schedule 1 below applies in relation to a contract made before 18 May 1973.Implied terms about quality or fitness
14.—(1) Except as provided by this section and section 15 below and subject to any other enactment, there is no implied [term] about the quality or fitness for any particular purpose of goods supplied under a contract of sale. [(2) Where the seller sells goods in the course of a business, there is an implied [term] that the goods supplied under the contract are of satisfactory quality. (2A) For the purpose of this Act, goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price (if relevant) and all the other relevant circumstances. (2B) For the purposes of this Act, the quality of goods includes their state and condition and the following (among others) are in appropriate cases aspects of the quality of goods—- (a) fitness for all the purposes for which goods of this kind in question are commonly supplied,
- (b) appearance and finish,
- (c) freedom from minor defects,
- (d) safety, and
- (e) durability.
- (a) which is specifically drawn to the buyer’s attention before the contract is made,
- (b) where the buyer examines the goods before the contract is made, which that examination ought to reveal, or
- (c) in the case of a contract for sale by sample, which would have been apparent on a reasonable examination of the sample.]
- (a) to the seller, or
- (b) where the purchase price or part of it is payable by instalments and the goods were previously sold by a credit-broker to the seller, to that credit-broker,
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any particular purpose for which the goods are being bought, there is an implied [term] that the goods supplied under the contract are reasonably fit for the purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the buyer does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the seller or credit-broker.