Consumer

Protection
• Sometimes even though the parties have not
expressly mentioned something as a term of the
contract, it will be implied into the contract

• If Leanne buys a new pair of shoes which then fall

apart, this is a breach of condition by the seller

• The seller may not have stated anywhere that the

shoes are in good condition but the term is IMPLIED
into the contract by the Consumer Rights Act
2015
Types of Implied Terms
1. The goods are of satisfactory quality
2. If no price is mentioned beforehand, a reasonable price will be
paid
3. When you ask for goods for a specific purpose they will be
suitable for that purpose

Implied terms normally stem from –

•CUSTOM

•COMMON LAW
•STATUTE
Terms implied by custom
• This is the way it is done in the trade, everyone knows that…
• If this is the case the trade practice or CUSTOM will be implied
into the contract

Examples of terms implied by custom

• The duration of its use
• Whether it is reasonable to imply such a term
• That such a term is actually used in practice

• Hutton v Warren [1836] where a tenant farmer at the end of a

lease claimed that he was entitled to a fair payment for the
seeds and labour that he had used on the land. Due to this
being a local custom to make such a payment enabled him to
succeed in his claim
Terms implied by Common
Law
• The courts will imply a term into a contract if it is obvious and
necessary

• Lord Simon stated – for a term to be implied it must be so

obvious that it goes without saying

• For example if you rent a room at the top of a house it goes

without saying that you can walk through the house to reach it
Terms implied into certain
contracts
• This normally applies to Tenancy agreements and
employment contracts

• For example under a tenancy agreement the contract

will not state that the house is fit for human habitation,
but it is an implied term

• Another term implied by law is that the landlord will

leave the tenant in peace
 Consumer Rights Act
2015
• This Act applies to contracts created after 1st Oct 2015
made between a trader and a consumer
• Business to Business contracts – the old law still applies

All goods will be under the CRA 2015:

• Satisfactory quality – goods must meet the standard that
a reasonable person would regard as satisfactory
(description/price) s9 (2) CRA 2015
• Fitness for purpose – where the consumer has made it
known to the trade that a particular purpose is required
for the goods – they will be fit for purpose s10 CRA 2015
• Description – s11 (1) when goods are sold by description
there is an implied term they will match as described
s.9 satisfactory quality

• S9 (3) quality includes state and condition – the

following aspects may equate to what is satisfactory:
(a) goods are the kind commonly supplied
(b) appearance and finish
(c) free from minor defects
(d) safety
(e) durable

• Rogers v Parish Ltd (1987) a new car with several

minor defects failed the above quality test
 S10 Fitness for purpose

• This section ONLY applies if the consumer relies on the trader’s skill
and judgment

• If the consumer makes their own choice of product and it then

becomes not fit for purpose they may not rely on this section

• Priest v Last (1903) the use of a hot water bottle scalded the buyer’s
wife – the court held that it was not necessary for the buyer to
explain that his wife was intending to use the item to relieve cramp

• Lowe v W Machell Joinery Ltd (2011) a bespoke staircase that did

not meet building regulations fell within this section
 S11 Description

• Beale v Taylor (1967) a car described was actually

made up of two different cars welded together – only
the rear end of the vehicle matched the described
model
 S48 Service contracts

• Three elements to contracts where one person

performs a service to another:

• S49 the trader will perform the service with

REASONABLE CARE AND SKILL

• S51 implied term that the consumer will pay a

REASONABLE PRICE for the service and no more

• S52 the trader must perform the service within a

REASONABLE TIME
 Digital content s2 (9)

• This section relates to intangible goods – apps, films,

books, music

• Almost identical protection is provided:

• Satisfactory quality s 34
• Fitness for practical purpose s35
• Description – this includes trial versions s36
 Business to Business
contracts ONLY
 When you buy something from a shop certain conditions are
implied into the contract by the Sale of Goods Act 1979
For example
S.12 that they belong to the person selling them

S.13 (1) that they fit their description

S.14 (2) that the goods are of satisfactory quality

S.14 (3) that they are fit for the purpose they are sold for
 These may not be stated anywhere but the buyer can rely on
them