Contract unit 3 CRA, UCTA, SOGA

Which Act governs trader–consumer sales contracts?

Consumer Rights Act 2015 (CRA).

When does the Sale of Goods Act 1979 generally apply?

Relevant non-consumer sales, including business-to-business and private sales.

When does the Supply of Goods and Services Act 1982 generally apply?

Relevant non-consumer service contracts and work-and-materials contracts.

CRA 2015 s 2: who is a consumer?

An individual acting wholly or mainly outside their trade, business, craft or profession.

CRA 2015 s 2: who is a trader?

A person acting for purposes relating to their trade, business, craft or profession.

SGA 1979 s 13: what term is implied?

Goods sold by description must correspond with that description.

SGA s 13: must the seller be a business?

No. It can apply to private sellers too, if the buyer reasonably relies on the description.

SGA 1979 s 14(2): what term is implied?

Business-supplied goods must be of satisfactory quality.

SGA 1979 s 14(3): what term is implied?

Goods must be reasonably fit for a purpose made known expressly or impliedly, where reliance is reasonable.

SGA ss 14(2) and 14(3): is liability fault-based?

No. Liability is strict; the buyer need not prove seller fault.

SGA s 11(4): what happens after acceptance?

The buyer cannot reject the goods under the relevant rejection right.

SGA s 35: when might goods be treated as accepted?

For example, retaining them beyond a reasonable time without intimating rejection.

SGA s 15A: when can rejection be unavailable?

Where breach is so slight that rejection would be unreasonable; seller must show this.

SGA breach of ss 13 or 14: usual remedies?

Reject and recover the price, subject to limits, or keep goods and claim damages.

SGSA 1982 s 2(1): what is implied?

In a contract to transfer goods, the transferor has the right to transfer ownership.

SGSA 1982 s 3: what is implied?

Goods supplied by description must correspond with that description.

SGSA 1982 s 4(2): what is implied?

Goods supplied in the course of business must be of satisfactory quality.

SGSA 1982 s 4(5): what is implied?

Goods must be fit for a purpose made known where the buyer reasonably relies on supplier skill or judgment.

SGSA 1982 s 13: what is implied?

Business services/work must be carried out with reasonable care and skill.

SGSA 1982 s 14: what is implied?

If no performance time is agreed, the service/work must be completed within a reasonable time.

SGSA 1982 s 15: what is implied?

If no price is fixed, a reasonable price must be paid.

SGSA ss 13–15: classification and liability?

Innominate terms; they do not impose strict liability.

CRA 2015 s 5: what does it cover?

Sales contracts between a trader and a consumer, including relevant contracts supplying goods for payment.

CRA 2015 s 9: what is required?

Goods must be of satisfactory quality.

CRA 2015 s 10: what is required?

Goods must be reasonably fit for a particular purpose made known to the trader, where applicable.

CRA 2015 s 11: what is required?

Goods must match their description.

CRA 2015 s 19: what does it address?

Consumer remedies where goods do not conform to the contract.

CRA 2015 ss 20 and 22: what is the short-term remedy?

Right to reject goods and receive a full refund, usually within 30 days for non-perishable goods.

CRA 2015 s 23: what remedy is available for faulty goods?

Repair or replacement, where appropriate.

CRA 2015 s 24: what further goods remedies exist?

Price reduction or final right to reject for a partial refund reflecting use.

CRA 2015 s 49: what service standard is implied?

The trader must perform the service with reasonable care and skill.

CRA 2015 s 51: what if no service price is fixed?

The consumer must pay a reasonable price.

CRA 2015 s 52: what if no service time is fixed?

The service must be performed within a reasonable time.

CRA 2015 s 54: what remedies apply to certain service breaches?

Repeat performance where appropriate, or a price reduction.

CRA 2015 s 31: can a trader exclude ss 9–11 goods rights?

No. Terms excluding or restricting these rights or remedies are not binding on the consumer.

CRA 2015 s 57: can a trader exclude the s 49 reasonable-care-and-skill duty?

No. The trader cannot exclude liability for breach of s 49.

CRA Part 2: when is a consumer term unfair?

If contrary to good faith it causes a significant imbalance to the consumer’s detriment.

What is the effect of an unfair CRA consumer term?

It is not binding on the consumer.

UCTA 1977: does it govern trader–consumer exemption clauses?

Generally no; the CRA 2015 governs those contracts.

UCTA 1977 s 13: what kinds of clauses are covered?

Clauses excluding, limiting or restricting liability or remedies, including onerous conditions.

UCTA 1977 s 2(1): can negligence liability for death or personal injury be excluded?

No. Such an exclusion or restriction is void.

UCTA 1977 s 2(2): can negligence liability for other loss be restricted?

Only if the clause satisfies the reasonableness test.

UCTA 1977 s 3: when does it apply?

Where a party deals on the other party’s written standard terms of business; restrictions on liability for breach are subject to reasonableness.

UCTA 1977 ss 6–7: what do they regulate?

Excluding or restricting liability for specified implied terms about goods under the SGA 1979 and SGSA 1982.

UCTA 1977 s 11: what is the reasonableness test?

Was the term fair and reasonable to include in the contract, considering circumstances known or reasonably contemplated when contracting?

UCTA Schedule 2: what does it provide?

Guidelines relevant to assessing reasonableness, including bargaining strength and alternatives.

What is the first step in an exemption-clause problem?

Identify the contract type and the term allegedly breached, then choose CRA or UCTA as appropriate.