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90 Chapter 3The terms of the contract

The SGITA 1973 implies terms as to the right to pass ownership, description, quality, fitness

and sample as soon as the hire-purchase agreement begins.

Section 10, which implies the terms as to satisfactory quality and fitness for the hirer’s

purpose, applies only if the owner of the goods makes the hire-purchase agreement in the

course of a business. The other sections apply to all contracts of hire-purchase. In almost all

hire-purchase agreements the owner will make the agreement in the course of a business.

The Supply of Goods and Services Act 1982

Part I of the Act

Part I of the Supply of Goods and Services Act 1982 (SGSA 1982) implies terms equivalent

to the terms in the SGA 1979 into two types of contracts. First, the terms are implied into

contracts for the transfer of property in goods. Second, the terms are implied into contracts

of hire. The terms are implied by the following sections.

Contracts for the transfer of property in goods

Section 2 Right to transfer the property

Section 3 Correspondence with description

Section 4(2) Satisfactory quality (business contracts only)

Section 4(3) Fitness for purpose (business contracts only)

Section 5 Correspondence with sample

A contract will be a contract for the transfer of property in goods if it is any contract which

involves the passing of ownership of goods (except a contract of sale of goods or a contract

of hire-purchase). It would therefore include contracts under which goods are bartered for

other goods. It would also cover the supply of goods in a contract under which services are

supplied. For example, it would cover the supply of oil when a car is serviced.

Right to sell

Quiet possession and

freedom from encumbrances

Correspondence with

description

Satisfactory quality in

business sales

Fitness for purpose in

business sales

Correspondence with

sample

Hire

SGSA 1982

s. 7

SGSA 1982

s. 7

SGSA 1982

s. 8

SGSA 1982

s. 9(2)

SGSA 1982

s. 9(3)

SGSA 1982

s. 10

Transfer of

property in

goods

SGSA 1982

s. 2

SGSA 1982

s. 2

SGSA 1982

s. 3

SGSA 1982

s. 4(2)

SGSA 1982

s. 4(3)

SGSA 1982

s. 5

Hire-purchase

SGITA 1973

s. 8

SGITA 1973

s. 8

SGITA 1973

s. 9

SGITA 1973

s. 10(2)

SGITA 1973

s. 10(3)

SGITA 1973

s. 11

Sale of goods

SGA 1979

s. 12(1)

SGA 1979

s. 12(2)

SGA 1979

s. 13

SGA 1979

s. 14(2)

SGA 1979

s. 14(3)

SGA 1979

s. 15

Term implied

Type of contract

Table 3.1The terms implied by SGA 1979, SGITA 1973 and SGSA 1982