Supply of Goods (Implied Terms) Act 1973
Ss. 1–7 repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 3 S. 8 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 Words in Act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)) 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)) 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)) S. 9 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 Word in s. 9(1) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(3)(a) (with s. 8(3)) S. 9(1A) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(3)(b) (with s. 8(3)) S. 10 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 Words in s. 10(1)(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(b) (with s. 8(3)) S. 10(2)(2A)-(2C) substituted (3.1.1995) for s. 10(2)(a)(b) by 1994 c. 35, ss. 7,8(2), Sch. 2 para. 4(4)(a) (with s. 8(3)) S. 10(2D)-(2F) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 3(2); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Word in s. 10(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(b) (with s. 8(3)) S. 10(7) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(c) (with s. 8(3) 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)) S. 11 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 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)) 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)) 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)) 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)) 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)) 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)) 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)) 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)) S. 12 substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para.4(7) (with s. 8(3)) S. 12A inserted (s.) (3.1.1995) by 1994 c. 35, ss. 7,8(2), Sch. 2 para. 4(8) (with s. 8(3)) 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)) 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 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)) S. 15 substituted by Consumer Credit Act 1974 (c. 39), s. 192(3)(4), Sch. 4 para. 36 Words substituted by Unfair Contract Terms Act 1977 (c. 50), Sch. 3 Words in s. 15(1) repealed (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(9)(a), Sch. 3 (with s. 8(3)) Definition of “consumer sale” substituted by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 2 para. 17 Words in s. 15(1) inserted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(2)(a); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Words in s. 15(1) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(2)(b); S.I. 2015/1630, art. 3(g) (with art. 6(1)) S. 15(3) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(3); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Word in s. 15(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(9)(c) (with s. 8(3)) S. 16 repealed (E.W.S.) (6.4.2005) by Regulatory Reform (Trading Stamps) Order 2005 (S.I. 2005/871), art. 1, Sch.; and s. 16 repealed (N.I.) (15.11.2005) by The Law Reform (Miscellaneous Provisions) (Northern Ireland) Order 2005 (S.I. 2005/1452), art. 1(2), Sch. 2; S.R. 2005/494, art. 2(1)(d) S. 17(2) repealed by Northern Ireland Constitution Act 1973 (c. 36), Sch. 6 Pt. I S. 18(2) repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 3 S. 8 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(1)(b), 20(1)(b) S. 9 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) S. 10 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) S. 11 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) The text of ss. 16(1)(2), 18(4) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991. 1965 c. 66. 1965 c. 67. 1966 c. 42. (N.I.). 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.
For section 12 of the principal Act (implied conditions as to title, and implied warranties as to quiet possession and freedom from encumbrances) there shall be substituted the following section:—
Section 13 of the principal Act (sale by description) shall be renumbered as subsection (1) of that section, and at the end there shall be inserted the following subsection:—
For section 14 of the principal Act (implied undertakings as to quality or fitness) there shall be substituted the following section:—
For section 55 of the principal Act (exclusion of implied terms and conditions) there shall be substituted the following section:—
After section 55 of the principal Act there shall be inserted the following section:—
In section 1(4) of the Uniform Laws on International Sales Act 1967 (which provides that no provision of the law of any part of the United Kingdom shall be regarded as a mandatory provision for the purposes of the Uniform Law on the International Sale of Goods so as to override the choice of the parties) for the words from " no provision " to the end of the subsection there shall be substituted the words " no provision of the law of any part of the United Kingdom, except sections 12 to 15, 55 and 55A of the Sale of Goods Act 1893, shall be regarded as a mandatory provision within the meaning of that Article. "
In section 61 of the principal Act (savings) there shall be inserted after subsection (5) thereof the following subsection—
In section 62(1) of the principal Act (definitions) at the appropriate points in alphabetical order there shall be inserted the following definitions:
After section 62(1) of the principal Act there shall be inserted the following subsection:—
In every relevant hire-purchase agreement, other than one to which subsection (2) below applies, there is—
an implied term 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
an implied term that—
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
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.
In a relevant 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— will disturb the quiet possession of the person to whom the goods are bailed or hired.
an implied term 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
an implied term that neither—
the creditor; nor
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
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;
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.
Where under a relevant hire-purchase agreement goods are bailed or (in Scotland) hired by description, there is an implied termthat 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.
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.
As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.
Except as provided by this section and section 11 below and subject to the provisions of any other enactment, including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly, there is no implied term as to the quality or fitness for any particular purpose of goods bailed or (in Scotland) hired under a relevant hire-purchase agreement.
Where the creditor bails or hires goods under a relevant hire-purchase agreement in the course of a business, there is an implied term that the goods supplied under the agreement are of satisfactory quality.
as regards defects specifically drawn to the hirer's attention before the agreement is made ; or
if the hirer examines the goods before the agreement is made, as regards defects which that examination ought to reveal.
Where the creditor bails or hires goods under a relevant hire-purchase agreement in the course of a business and the person to whom the goods are bailed or hired, expressly or by implication, makes known— any particular purpose for which the goods are being bailed or hired, there is an implied term that the goods supplied under the agreement are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the person to whom the goods are bailed or hired does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the creditor or credit-broker.
to the creditor in the course of negotiations conducted by the creditor in relation to the making of the relevant hire-purchase agreement, or
to a credit-broker in the course of negotiations conducted by that broker in relation to goods sold by him to the creditor before forming the subject matter of the relevant hire-purchase agreement,
For the purposes 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.
An implied condition or warranty as to quality or fitness for a particular purpose may be annexed to a relevant hire-purchase agreement by usage.
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—
fitness for all the purposes for which goods of the kind in question are commonly supplied,
appearance and finish,
freedom from minor defects,
safety, and
durability.
The preceding provisions of this section apply to a relevant hire-purchase agreement made by a person who in the course of a business is acting as agent for the creditor as they apply to an agreement made by the creditor in the course of a business, except where the creditor is not bailing or hiring in the course of a business and either the person to whom the goods are bailed or hired knows that fact or reasonable steps are taken to bring it to the notice of that person before the agreement is made.
The term implied by subsection (2) above does not extend to any matter making the quality of goods unsatisfactory—
which is specifically drawn to the attention of the person to whom the goods are bailed or hired before the agreement is made,
where that person examines the goods before the agreement is made, which that examination ought to reveal, or
where the goods are bailed or hired by reference to a sample, which would have been apparent on a reasonable examination of the sample
In subsection (3) above and this subsection—
“ credit-broker ” means a person acting in the course of a business of credit brokerage;
“ credit brokerage ” means the effecting of introductions of individuals desiring to obtain credit—
to persons carrying on any business so far as it relates to the provision of credit, or
to other persons engaged in credit brokerage.
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As regards England and Wales and Northern Ireland, the terms implied by subsections (2) and (3) above are conditions.
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(1)Where under a relevant hire-purchase agreement goods are bailed or (in Scotland) hired by reference to a sample, there is an implied term—
that the bulk will correspond with the sample in quality; and
that the person to whom the goods are bailed or hired will have a reasonable opportunity of comparing the bulk with the sample; and
that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.
As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.
An express term does not negative a term implied by this Act unless inconsistent with it.
An express condition or warranty does not negative a condition or warranty implied by this Act unless inconsistent therewith.
A term of a hire purchase agreement or any other agreement exempting from all or any of the provisions of section 8 above shall be void.
A term of a hire purchase agreement or any other agreement exempting from all or any of the provisions of section 9, 10 or 11 above shall be void in the case of a consumer agreement and shall, in any other case, not be enforceable to the extent that it is shown that it would not be fair or reasonable to allow reliance on the term.
In determining for the purpose of subsection (3) above whether or not reliance on any such terms would be fair or reasonable regard shall be had to all the circumstances of the case and in particular to the following matters—
the strength of the bargaining positions of the owner and hirer relative to each other, taking into account, among other things, the availability of suitable alternative products and sources of supply ;
whether the hirer received an inducement to agree to the term or in accepting it had an opportunity of acquiring the goods or suitable alternatives without it from any source of supply;
whether the hirer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);
where the term exempts from all or any of the provisions of section 9, 10 or 11 above if some condition is not complied with, whether it was reasonable at the time of the agreement to expect that compliance with that condition would be practicable ;
whether the goods were manufactured, processed or adapted to the special order of the hirer.
Subsection (4) above shall not prevent the court from holding, in accordance with any rule of law, that a term which purports to exclude or restrict any of the provisions of section 9, 10 or 11 above is not a term of the hire-purchase agreement.
In this section " consumer agreement" means a hire-purchase agreement where the owner makes the agreement in the course of a business and the goods to which the agreement relates—
are of a type ordinarily supplied for private use or consumption ; and
are hired to a person who does not hire or hold himself out as hiring them in the course of a business.
The onus of proving that a hire-purchase agreement falls to be treated for the purposes of this section as not being a consumer agreement shall lie on the party so contending.
Any reference in this section to a term exempting from all or any of the provisions of any section of this Act is a reference to a term which purports to exclude or restrict, or has the effect of excluding or restricting, the operation of all or any of the provisions of that section, or the exercise of a right conferred by any provision of that section, or any liability of the owner for breach of a condition or warranty implied by any provision of that section.
It is hereby declared that any reference in this section to a term of an agreement includes a reference to a term which although not contained in an agreement is incorporated in the agreement by another term of the agreement.
Where in the case of a relevant hire-purchase agreement— ... the breach is not to be treated as a breach of condition but may be treated as a breach of warranty.
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
the breach is so slight that it would be unreasonable for him to reject them,
This section applies unless a contrary intention appears in, or is to be implied from, the agreement.
It is for the creditor to show—
that a breach fell within subsection (1)(b) above, and
that the agreement was a relevant hire-purchase agreement.
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This section does not apply to Scotland.
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Section l1(1)(c) of the principal Act (whereby in certain circumstances a breach of a condition in a contract of sale is treated only as a breach of warranty) shall not apply to conditional sale agreements which are agreements for consumer sales.
In England and Wales and Northern Ireland a breach of a condition (whether express or implied) to be fulfilled by the seller under any such agreement shall be treated as a breach of warranty, and not as grounds for rejecting the goods and treating the agreement as repudiated, if (but only if) it would have fallen to be so treated had the condition been contained or implied in a corresponding hire-purchase agreement as a condition to be fulfilled by the owner.
Where in a relevant 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—
to claim damages, and
if the breach is material, to reject any goods delivered under the agreement and treat it as repudiated.
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This section applies to Scotland only.
In sections 8 to 14 above and this section— and 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;
" conditional sale agreement", " hire-purchase agreement ", " hirer " and " owner " have the same meanings respectively as in the Hire-Purchase Act 1965 or, as the case may be, the Hire-Purchase (Scotland) Act 1965 ;
“ business ” includes a profession and the activities of any government department (including a Northern Ireland department), or local or public authority ;
" business " includes a profession and the activities of any government department 'including a department of the Government of Northern Ireland), local authority or statutory undertaker;
“ buyer ” and “ seller ” includes a person to whom rights and duties under a conditional sale agreement have passed by assignment or operation of law;
" consumer sale " has the same meaning as in section 55 of the principal Act, as amended by section 4 above; and
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" condition " and " warranty ", in relation to Scotland, mean stipulation, and any stipulation referred to in sections 8(1)(a) 9, 10 and 11 above shall be deemed to be material to the agreement.
“ 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;
“ 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)
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
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—
the exercise of an option to purchase by that person,
the doing of any other specified act by any party to the agreement,
the happening of any other specified event.
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"hirer" has the same meaning as in section 65(1) of the Hire Purchase Act (Northern Ireland) 1966; and
subject to paragraph (a) above, for the reference to the Hire-Purchase Act 1965 there shall be substituted a reference to the Hire-Purchase Act (Northern Ireland) 1966.
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Nothing in sections 8 to 13 above shall prejudice the operation of any other enactment including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly or any rule of law whereby any term, other than one relating to quality or fitness, is to be implied in any relevant hire-purchase agreement.
Nothing in sections 8 to 13 above shall prejudice the operation of any other enactment including any enactment of the Parliament of Northern Ireland or any rule of law whereby any condition or warranty, other than one relating to quality or fitness, is to be implied in any hire-purchase agreement.
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For section 4 of the Trading Stamps Act 1964 (warranties to be implied on redemption of trading stamps for goods) there shall be substituted the following section:—
The section so substituted, without subsection (3) thereof, shall be substituted for section 4 of the Trading Stamps Act (Northern Ireland) 1965 (warranties to be implied on redemption of trading stamps for goods).
It is hereby declared that this Act extends to Northern Ireland.
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This Act may be cited as the Supply of Goods (Implied Terms) Act 1973.
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This Act shall come operation at the expiration of a period of one month beginning with the date on which it is passed.
Sections 17 to 20 and 29 of each of the following Acts, that is to say, the Hire-Purchase Act 1965, the Hire-Purchase (Scotland) Act 1965 and the Hire- Purchase Act (Northern Ireland) 1966 (provisions as to conditions, warranties and stipulations in hire-purchase agreements) shall cease to have effect.
This Act does not apply to contracts of sale or hire-purchase agreements made before its commencement.
Ss. 1–7 repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 3 S. 8 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 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)) 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)) 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)) S. 9 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 Word in s. 9(1) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(3)(a) (with s. 8(3)) S. 9(1A) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(3)(b) (with s. 8(3)) S. 10 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 Words in s. 10(1)(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(b) (with s. 8(3)) S. 10(2)(2A)-(2C) substituted (3.1.1995) for s. 10(2)(a)(b) by 1994 c. 35, ss. 7,8(2), Sch. 2 para. 4(4)(a) (with s. 8(3)) S. 10(2D)-(2F) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 3(2); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Word in s. 10(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(b) (with s. 8(3)) S. 10(7) inserted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(4)(c) (with s. 8(3) 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)) S. 11 substituted by Consumer Credit Act 1974 (c. 39), s. 192(4), Sch. 4 para. 35 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)) 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)) 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)) 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)) 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)) 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)) 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)) 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)) S. 12 substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para.4(7) (with s. 8(3)) S. 12A inserted (s.) (3.1.1995) by 1994 c. 35, ss. 7,8(2), Sch. 2 para. 4(8) (with s. 8(3)) 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)) 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 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)) S. 15 substituted by Consumer Credit Act 1974 (c. 39), s. 192(3)(4), Sch. 4 para. 36 Words substituted by Unfair Contract Terms Act 1977 (c. 50), Sch. 3 Words in s. 15(1) repealed (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(9)(a), Sch. 3 (with s. 8(3)) Definition of “consumer sale” substituted by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 2 para. 17 Words in s. 15(1) inserted (1.10.2015) by Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(2)(a); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Words in s. 15(1) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(2)(b); S.I. 2015/1630, art. 3(g) (with art. 6(1)) S. 15(3) omitted (1.10.2015) by virtue of Consumer Rights Act 2015 (c. 15), s. 100(5), Sch. 1 para. 7(3); S.I. 2015/1630, art. 3(g) (with art. 6(1)) Word in s. 15(4) substituted (3.1.1995) by 1994 c. 35, ss. 7, 8(2), Sch. 2 para. 4(9)(c) (with s. 8(3)) S. 16 repealed (E.W.S.) (6.4.2005) by Regulatory Reform (Trading Stamps) Order 2005 (S.I. 2005/871), art. 1, Sch.; and s. 16 repealed (N.I.) (15.11.2005) by The Law Reform (Miscellaneous Provisions) (Northern Ireland) Order 2005 (S.I. 2005/1452), art. 1(2), Sch. 2; S.R. 2005/494, art. 2(1)(d) S. 17(2) repealed by Northern Ireland Constitution Act 1973 (c. 36), Sch. 6 Pt. I S. 18(2) repealed by Sale of Goods Act 1979 (c. 54, SIF 109:1), s. 63, Sch. 3 S. 8 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(1)(b), 20(1)(b) S. 9 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) S. 10 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) S. 11 amended by Unfair Contract Terms Act 1977 (c. 50, SIF 30), ss. 6(2)(b), 20(2)(b) The text of ss. 16(1)(2), 18(4) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991. 1965 c. 66. 1965 c. 67. 1966 c. 42. (N.I.). 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.
For section 12 of the principal Act (implied conditions as to title, and implied warranties as to quiet possession and freedom from encumbrances) there shall be substituted the following section:—
Section 13 of the principal Act (sale by description) shall be renumbered as subsection (1) of that section, and at the end there shall be inserted the following subsection:—
For section 14 of the principal Act (implied undertakings as to quality or fitness) there shall be substituted the following section:—
For section 55 of the principal Act (exclusion of implied terms and conditions) there shall be substituted the following section:—
After section 55 of the principal Act there shall be inserted the following section:—
In section 1(4) of the Uniform Laws on International Sales Act 1967 (which provides that no provision of the law of any part of the United Kingdom shall be regarded as a mandatory provision for the purposes of the Uniform Law on the International Sale of Goods so as to override the choice of the parties) for the words from " no provision " to the end of the subsection there shall be substituted the words " no provision of the law of any part of the United Kingdom, except sections 12 to 15, 55 and 55A of the Sale of Goods Act 1893, shall be regarded as a mandatory provision within the meaning of that Article. "
In section 61 of the principal Act (savings) there shall be inserted after subsection (5) thereof the following subsection—
In section 62(1) of the principal Act (definitions) at the appropriate points in alphabetical order there shall be inserted the following definitions:
After section 62(1) of the principal Act there shall be inserted the following subsection:—
In every relevant hire-purchase agreement, other than one to which subsection (2) below applies, there is—
an implied term 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
an implied term that—
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
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.
In a relevant 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— will disturb the quiet possession of the person to whom the goods are bailed or hired.
an implied term 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
an implied term that neither—
the creditor; nor
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
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;
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.
Where under a relevant hire-purchase agreement goods are bailed or (in Scotland) hired by description, there is an implied termthat 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.
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.
As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.
Except as provided by this section and section 11 below and subject to the provisions of any other enactment, including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly, there is no implied term as to the quality or fitness for any particular purpose of goods bailed or (in Scotland) hired under a relevant hire-purchase agreement.
Where the creditor bails or hires goods under a relevant hire-purchase agreement in the course of a business, there is an implied term that the goods supplied under the agreement are of satisfactory quality.
as regards defects specifically drawn to the hirer's attention before the agreement is made ; or
if the hirer examines the goods before the agreement is made, as regards defects which that examination ought to reveal.
Where the creditor bails or hires goods under a relevant hire-purchase agreement in the course of a business and the person to whom the goods are bailed or hired, expressly or by implication, makes known— any particular purpose for which the goods are being bailed or hired, there is an implied term that the goods supplied under the agreement are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the person to whom the goods are bailed or hired does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the creditor or credit-broker.
to the creditor in the course of negotiations conducted by the creditor in relation to the making of the relevant hire-purchase agreement, or
to a credit-broker in the course of negotiations conducted by that broker in relation to goods sold by him to the creditor before forming the subject matter of the relevant hire-purchase agreement,
For the purposes 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.
An implied condition or warranty as to quality or fitness for a particular purpose may be annexed to a relevant hire-purchase agreement by usage.
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—
fitness for all the purposes for which goods of the kind in question are commonly supplied,
appearance and finish,
freedom from minor defects,
safety, and
durability.
The preceding provisions of this section apply to a relevant hire-purchase agreement made by a person who in the course of a business is acting as agent for the creditor as they apply to an agreement made by the creditor in the course of a business, except where the creditor is not bailing or hiring in the course of a business and either the person to whom the goods are bailed or hired knows that fact or reasonable steps are taken to bring it to the notice of that person before the agreement is made.
The term implied by subsection (2) above does not extend to any matter making the quality of goods unsatisfactory—
which is specifically drawn to the attention of the person to whom the goods are bailed or hired before the agreement is made,
where that person examines the goods before the agreement is made, which that examination ought to reveal, or
where the goods are bailed or hired by reference to a sample, which would have been apparent on a reasonable examination of the sample
In subsection (3) above and this subsection—
“ credit-broker ” means a person acting in the course of a business of credit brokerage;
“ credit brokerage ” means the effecting of introductions of individuals desiring to obtain credit—
to persons carrying on any business so far as it relates to the provision of credit, or
to other persons engaged in credit brokerage.
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As regards England and Wales and Northern Ireland, the terms implied by subsections (2) and (3) above are conditions.
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(1)Where under a relevant hire-purchase agreement goods are bailed or (in Scotland) hired by reference to a sample, there is an implied term—
that the bulk will correspond with the sample in quality; and
that the person to whom the goods are bailed or hired will have a reasonable opportunity of comparing the bulk with the sample; and
that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.
As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.
An express term does not negative a term implied by this Act unless inconsistent with it.
An express condition or warranty does not negative a condition or warranty implied by this Act unless inconsistent therewith.
A term of a hire purchase agreement or any other agreement exempting from all or any of the provisions of section 8 above shall be void.
A term of a hire purchase agreement or any other agreement exempting from all or any of the provisions of section 9, 10 or 11 above shall be void in the case of a consumer agreement and shall, in any other case, not be enforceable to the extent that it is shown that it would not be fair or reasonable to allow reliance on the term.
In determining for the purpose of subsection (3) above whether or not reliance on any such terms would be fair or reasonable regard shall be had to all the circumstances of the case and in particular to the following matters—
the strength of the bargaining positions of the owner and hirer relative to each other, taking into account, among other things, the availability of suitable alternative products and sources of supply ;
whether the hirer received an inducement to agree to the term or in accepting it had an opportunity of acquiring the goods or suitable alternatives without it from any source of supply;
whether the hirer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);
where the term exempts from all or any of the provisions of section 9, 10 or 11 above if some condition is not complied with, whether it was reasonable at the time of the agreement to expect that compliance with that condition would be practicable ;
whether the goods were manufactured, processed or adapted to the special order of the hirer.
Subsection (4) above shall not prevent the court from holding, in accordance with any rule of law, that a term which purports to exclude or restrict any of the provisions of section 9, 10 or 11 above is not a term of the hire-purchase agreement.
In this section " consumer agreement" means a hire-purchase agreement where the owner makes the agreement in the course of a business and the goods to which the agreement relates—
are of a type ordinarily supplied for private use or consumption ; and
are hired to a person who does not hire or hold himself out as hiring them in the course of a business.
The onus of proving that a hire-purchase agreement falls to be treated for the purposes of this section as not being a consumer agreement shall lie on the party so contending.
Any reference in this section to a term exempting from all or any of the provisions of any section of this Act is a reference to a term which purports to exclude or restrict, or has the effect of excluding or restricting, the operation of all or any of the provisions of that section, or the exercise of a right conferred by any provision of that section, or any liability of the owner for breach of a condition or warranty implied by any provision of that section.
It is hereby declared that any reference in this section to a term of an agreement includes a reference to a term which although not contained in an agreement is incorporated in the agreement by another term of the agreement.
Where in the case of a relevant hire-purchase agreement— ... the breach is not to be treated as a breach of condition but may be treated as a breach of warranty.
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
the breach is so slight that it would be unreasonable for him to reject them,
This section applies unless a contrary intention appears in, or is to be implied from, the agreement.
It is for the creditor to show—
that a breach fell within subsection (1)(b) above, and
that the agreement was a relevant hire-purchase agreement.
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This section does not apply to Scotland.
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Section l1(1)(c) of the principal Act (whereby in certain circumstances a breach of a condition in a contract of sale is treated only as a breach of warranty) shall not apply to conditional sale agreements which are agreements for consumer sales.
In England and Wales and Northern Ireland a breach of a condition (whether express or implied) to be fulfilled by the seller under any such agreement shall be treated as a breach of warranty, and not as grounds for rejecting the goods and treating the agreement as repudiated, if (but only if) it would have fallen to be so treated had the condition been contained or implied in a corresponding hire-purchase agreement as a condition to be fulfilled by the owner.
Where in a relevant 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—
to claim damages, and
if the breach is material, to reject any goods delivered under the agreement and treat it as repudiated.
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This section applies to Scotland only.
In sections 8 to 14 above and this section— and 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;
" conditional sale agreement", " hire-purchase agreement ", " hirer " and " owner " have the same meanings respectively as in the Hire-Purchase Act 1965 or, as the case may be, the Hire-Purchase (Scotland) Act 1965 ;
“ business ” includes a profession and the activities of any government department (including a Northern Ireland department), or local or public authority ;
" business " includes a profession and the activities of any government department 'including a department of the Government of Northern Ireland), local authority or statutory undertaker;
“ buyer ” and “ seller ” includes a person to whom rights and duties under a conditional sale agreement have passed by assignment or operation of law;
" consumer sale " has the same meaning as in section 55 of the principal Act, as amended by section 4 above; and
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" condition " and " warranty ", in relation to Scotland, mean stipulation, and any stipulation referred to in sections 8(1)(a) 9, 10 and 11 above shall be deemed to be material to the agreement.
“ 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;
“ 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)
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
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—
the exercise of an option to purchase by that person,
the doing of any other specified act by any party to the agreement,
the happening of any other specified event.
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"hirer" has the same meaning as in section 65(1) of the Hire Purchase Act (Northern Ireland) 1966; and
subject to paragraph (a) above, for the reference to the Hire-Purchase Act 1965 there shall be substituted a reference to the Hire-Purchase Act (Northern Ireland) 1966.
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Nothing in sections 8 to 13 above shall prejudice the operation of any other enactment including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly or any rule of law whereby any term, other than one relating to quality or fitness, is to be implied in any relevant hire-purchase agreement.
Nothing in sections 8 to 13 above shall prejudice the operation of any other enactment including any enactment of the Parliament of Northern Ireland or any rule of law whereby any condition or warranty, other than one relating to quality or fitness, is to be implied in any hire-purchase agreement.
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For section 4 of the Trading Stamps Act 1964 (warranties to be implied on redemption of trading stamps for goods) there shall be substituted the following section:—
The section so substituted, without subsection (3) thereof, shall be substituted for section 4 of the Trading Stamps Act (Northern Ireland) 1965 (warranties to be implied on redemption of trading stamps for goods).
It is hereby declared that this Act extends to Northern Ireland.
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This Act may be cited as the Supply of Goods (Implied Terms) Act 1973.
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This Act shall come operation at the expiration of a period of one month beginning with the date on which it is passed.
Sections 17 to 20 and 29 of each of the following Acts, that is to say, the Hire-Purchase Act 1965, the Hire-Purchase (Scotland) Act 1965 and the Hire- Purchase Act (Northern Ireland) 1966 (provisions as to conditions, warranties and stipulations in hire-purchase agreements) shall cease to have effect.
This Act does not apply to contracts of sale or hire-purchase agreements made before its commencement.