Sale of Goods to a Consumer (Sale of Goods Act 1979)

In England and Wales the sale of goods is governed by the Sale of Goods Act 1979 (as amended by the Sale and Supply of Goods Act 1994 and the Sale of Goods (Amendment) Act 1995 ("SGA 1979").

Duties of the Parties

It is the duty of the seller to deliver the goods and of a buyer to accept and pay for them in accordance with the terms of the contract. Thus the seller must be ready and willing to give possession of the goods in exchange for the purchase price and the buyer must be ready and willing to pay for the goods. These duties are fundamental and failure by either party to perform them allows the innocent party to cancel the contract and sue for damages. The duties of the parties are further defined by the terms of the contract and terms, which can be implied by law.

Contractual Terms

Express terms, are oral or written terms agreed between the parties. Often express terms are a seller's standard Terms and Conditions, which are incorporated into contracts for the sale of goods. In consumer sales, should a Company wish to rely on their standard terms and conditions, they should ensure that these are brought to the buyer's attention, agreed (in particular if they are onerous to the buyer) and are reasonable.

Implied Terms

Implied into all contracts for the sale of goods whether the normal purchase from a retailer by the consumer or within commercial sales are the following terms:

That the seller has the right to sell the goods and that they are free from encumbrances or charges and that the buyer will enjoy quiet possession.
That the goods will correspond to their description.
That the goods will be of satisfactory quality
That where the buyer makes known the purpose of the purchase, that the goods will be fit for that purpose - or fit for the normal purpose.
That where goods are sold by sample, they will comply with that sample.

All the above are classed as conditions and any breach of them, for example, in the sale of defective goods, would amount to a fundamental breach of contract and could entitle the purchaser to reject the goods and seek reimbursement of the purchase price or claim damages.

Sellers Duties and Buyers Remedies

Sellers Duties

Transfer possession by delivering goods in accordance with the terms of the contract i.e. on time and at the place agreed or if no agreement, at the sellers place of business and at a reasonable time.
Sell satisfactory quality goods, which are fit for the purpose that they were purchased for.
Sell goods, which correspond with their description or the sample used.

Buyer's Remedies

Should the seller fail to comply with his duties either those expressly stated or implied by law, the Buyer would have a right to recourse. The remedies available and set out below are in addition to any remedies they may have been provided by a commercial guarantee or warranties.

Rejection and termination of the contract.
Damages.
Refusal to perform own obligations.
Specific performance of sellers obligations.

It should be noted that the duties and remedies can differ from case to case. The rejection of goods and termination of the contract, thereby entitling a reimbursement of the purchase price paid is only available in certain cases and can be lost due to a number of intervening events. This would leave the buyer with only a remedy in damages.

This article gives a general overview only and the legal position at the time of writing this article. It cannot be relied upon in any particular case. Specific legal advice must always be considered to include consideration as to whether the legal position contained in this article has changed since going to print. For further information and advice, please contact Nita King or Marianne Johns on 01793 527141 or alternatively by email on Nita.King@lemon-co.co.uk or Marianne.Johns@lemon-co.co.uk.

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