11 SalesContract&ConsumerProtection

11.4 Implied terms
1979 Act 1973 Act 1982 Act
l
5 terms, Sections 12 to 15 l 4 terms, Sections 8 to 11
l 4 terms for contracts for work and materials, barter, rent and leasing, Sections 2-5
1 Scope of the law 2 Implied terms 3 Title 4 Description 5 Quality and fitness in business sales 6 Sample 7 Remedies in non-consumer cases 8 Exclusion of implied terms
(4) Ways to protect innocent purchasers of stolen and lost articles:
l Time limit for real owner to request for the return of property after which he can’t do so, e.g. 3 years in France.
4 Description (1) Description can be made in many ways, in contract or advertisement. (2) The law isn’t concerned with trifles (trivial).
Case 1: Acros v Ronaasen & Son (1933) The seller contracted to sell a quantity of wooden staves for making ces “ half an inch thick”. 90% of them were between half an inch and 5/8 of an inch, but 10% were over 5/8 of an inch. The buyer rejected all staves though they were perfectly fit for making barrels. House of Lords: Buyer could reject.
lIf purchased at auction or other public market, real owner can’t request the return unless pay the innocent purchase the price of the goods. l As tomoney or unregistered securities, the real owner isn’t entitled to request the return.
Illustration:
Owner Thief A Money Car (Police) B C D
Case: Rowland v Divall (1923)
A thief stole a car from its owner and sold it to defendant, The plaintiff, motor dealer bought it for $334. The plaintiff did it up and resold it for $400. On discovering the car was stolen, the police took it from the customer and returned it to the owner. The customer went back to plaintiff who returned his $400. Then the plaintiff asked the defendant for return of the $334. The defendant refused.
l 4 terms for contract of hire, Sections 7 to 10 l 3 terms for contracts for services, Sections 13 to 15
1994 Act
l Satisfactory
quality
(1) Such terms are conditions, except in non-consumer contracts as per 1994 Act. (2) Such terms can’t be excluded, except in non-consumer contract as per 1994 Act.
3 Title (ownership)
(1) This is a condition and can’t be excluded. (2) In the chain transaction of stolen car, the loser is generally the one buying from the thief.
Court of appeal: Beale returned the car and got money back.
Case 3: Re Moore v Landauer (1921)
A consignment of 3100 tins of peaches was sent shipped from Australia to buyer in UK. It arrived late. The buyer rejected because the peaches had been described as packed 30 tins to a case, about 1/2 were packed 24 to a case rather than of 30. The total number was correct.
Case 2: Beal v taylor (1967)
Taylor advertised a car, as Triumph Herald 1200, believing it was correct. Beale examined and bough it. The real of the car was indeed Triumph Herald 1200, but it had been welded to the front of a Triumph Herald 948. Beale had seen a “1200” badge (symbol) on the rear of the car when inspecting it.
House of Lords: It was of merchantable quality.
Case 2: Shine v general Ltd (1988)
A motorist bought a second-hand sports car giving him problems. After he found the car had been involved in car crash and totally submerged in water, he sought to reject it. Court of appeal: Not of merchantable quality.
1994 Act
+ non-consumer contract
Meaning of “sale”: Pays money in return for ownership of goods. ╳ Gift, barter, hire or lease Meaning of “goods”: √ All personal chattels: you xing cai chan ╳ Things in action wu xing cai chan
11.1 Scope of the law
1979 Act 1973 Act 1982 Act
Contract for sale of goods + Hire purchase Contracts for supply of work and materials, contracts for barter, hire, rent or leasing
Case 3: Rogers v Parish Ltd (1987)
A motorist bought a new Range Rover for $16000. It had minor problems, but was drivable and defects could have been put right. He rejected it. Court of appeal: Not merchantable due to high price for very high expectations.
Court of appeal: The defendant must return $334 to plaintiff.
(3) No conflict with “innocent acquisition” in civil law countries: The innocent possession only applies to unregistered movable property, excluding immovable and registered property like car. It requires the primary possession chain separating from the real owner be voluntary and legal, e.g. leasing, lending, storage, invalid sale etc. Stolen and lost articles don’t apply.