Commercial law

Commercial law. Sale of Goods act 1979.

Facts of the case. Harrier gives a description that she needs wigs that are suitable for all individuals, especially those with eczema. Harriet gets into a contract with Ramees who works for Sally’s UK This is a business-to-business contract She places an order for 100 pack of hair clips, each pack containing 50 hair clips. The clips are on offer as some of them are broken. She places an order for 5 blonde wigs, 5 ash brown wigs and 100 pack of hair clips She is to receive her order in separate installments due to covid Harriet is unhappy with her as it did not match the description in the contract She is unable to reject the goods due to a clause..

Contract between Harriet and Ramees. She is to receive: - The first delivery of 5 blonde wigs and 40 packs of hair clips will be delivered on 01st September. - The second delivery will be on 05 th September for 3 ash brown wigs and 40 packs of hair clips. The third and final delivery will be on 09 th September for 2 ash brown wigs and 20 packs of hair clips She received: - On 01 st September, receives 3 blonde wigs and 40 packs of hair clips. Each pack contains 20 hair clips, with half snapped into two and completely unusable. On 05 th September, she receives 7 ash brown wigs and 60 packs of hair clips. Ea ch pack contains 20 hair clips although this time, the hair clips are not broken. Clause in the contract: “the seller is excluded of the liability as per ss 13-15 according to the sale of goods act 1979”.

The IRAC method. Issue - define legal issue Relevant law - using legal principles from the case and statutes Application - apply law to facts and develop legal arguments Conclusion reached.

What is the legal issue?. Whether the seller is in breach of the contract when it comes to selling damaged goods which did not match the description?.

Sales of Goods Act 1979. Legislation implies terms of contracts in exchange of tangible goods for money ”A contract by which the seller transfers or agrees to transfer to property in goods to the buyer for a money consideration called the price” – section 2(1) SGA Deals with all issues relating to sale and purchase of goods in the UK..

Relevant law. Sale of Goods Act 1979 Section 14- implied terms about quality and fitness The seller needs to provide goods that are fit and qualified in line with the description of the goods. Section 14(2)- seller sells goods in the course of a business, there is an implied term in the contract that the goods are of satisfactory quality Stevenson and Rogers (1999)- issue on whether it needs to be of satisfactory under section 14 SGA Section 14(3)- T here is an implied term that the goods supplied under the contract are reasonably fit for that purpose Cammell Laird & Co LTD v Manganese Bronze & Brass Co LTD 1934- reliance on sellers' judgement..

Application. Section 14 SGA 1979 Stevenson v Rogers (1999)- Court held that the sale was in course of a business and so under section 14(2), the defendant had to ensure the boats were of satisfactory quality. Cammell Laird & Co LTD v Manganese Bronze & Brass Co LTD 1934- court held that the propellers were not fit for the purpose under section 14(3)..

Exclusion clause. Sale of goods act s55(1) (1979) Unfair contract terms act s6 (1977)- s12 SGA cannot be excluded Ss13,14,15 can be excluded- must be REASONABLE Reasonable test.

Reasonable test. UCTA s11(1) (1977)- fair and reasonable term to be included having regard to the circumstances at the time the contract was made UCTA s11(2)- what determines the reasonableness of a term? Look at schedule 2 (a) The strength of the bargaining positions of the parties relative to each other, considering alternative means by which the customer’s requirements could have been met; (b) whether the customer received an inducement to agree to the term, or, had an opportunity to enter a similar contract with other persons, but without having a similar term; (c) whether the customer knew or ought reasonably to have known of the existence and the extent of the term (d) where the term excludes or restricts any relevant liability if some condition was not complied with, was it reasonable at the time of the contract to expect that compliance with that condition would be practicable?; (e) whether the goods were manufactured, processed, or adapted to the special order of the customer..

Consumer rights act 2015. Contract that is ( i ) contract for sale, (ii) hire agreement, (iii) hire purchase agreement (iv) contract for the transfer of goods, shall have the following terms in the contract: Satisfactory quality- section 9 Description of goods given by trader Price or other considerations paid or given for goods Other relevant circumstances Consumer rights act s10 (2015).

Conclusion. Communication between the parties was unclear- Harriet did not receive enough detail regarding the goods she placed an order for The products did not meet the Claimant’s description and the goods ended up being unfit for the purpose – section 14(3) SGA Harriet's items were not of satisfactory quality section 14(2) SGA Harriet has the right to sought damages and is entitled to remedies..

Remedies. Remedies under Consumer Rights Act 2015 Right to reject the goods- ss20-22 Repair or replacement of the goods- s23 Refund for the goods Buyers claim for damages- expectation entitlement.

Reference. Sale of Goods act 1979 Sale of Goods act 1979 section (2)1 Sale of Goods act 1979 section 14 Sale of Goods act 1979 section 14(2) Stevenson and Rogers (1999) 1 ALL ER 613 Sale of Goods act 1979 section 14(3) Cammel Laird & Co LTD v Manganese Bronze and Brass Co LTD (1934) AC 402 Sale of Goods act (1979) section 55(1) Unfair Contract Terms act 1977 Unfair Contract Terms act 1977 section 6 Unfair Contract Terms act 1977 section 11(1) Unfair Contract Terms act 1977 section 11(2) The Consumer Rights act 2015 ERIC. OSBORNE BASKIND, COMMERCIAL LAW (OXFORD UNIV PRESS 2022). Smits, Jan M., ed. Contract law: a comparative introduction . Edward Elgar Publishing, 2017..