Sale of Goods Act 1979 - Fit for Purpose
Submit Articles Back to Articles
19 December 2011
The Sale of Goods Act 1979 ('SOGA') allows
terms to be expressly or impliedly incorporated into contracts. Breach
of either express or implied terms by any party to the contract will
amount to a breach of those terms and may give rise to remedies. This
article focuses of section 14(3) of SOGA (fit for purpose).
A dispute in relation to defective goods
may fall under s14 (3) of SOGA, unless this has been effectively
excluded. This makes it an implied condition that the goods supplied by
the seller should be fit for the purpose for which the buyer made known
to the seller, for example, prior to the contract being made the seller
confirmed in writing that the goods would be fit for purpose.
If the goods are found not to be fit for purpose, an implied condition
has been breached.
A breach of the implied condition of fit for purpose would give the
buyer the right to reject the goods. However the right to reject the
goods can be lost in two ways:
1. if after a lapse of reasonable time the buyer retains the goods
without notifying the seller; or
2. if the breach is so slight and it is a commercial buyer, it would be
unreasonable for him to reject the goods.
Irrespective of whether or not the buyer has lost the right to reject
the goods, breach of condition will allow the buyer to claim damages in
relation to the products, provided these damages are not too remote.
Hadley v Baxendale
Damages for loss of usual trading profit as a result of defective
goods/ delay etc would come within the first limb of Hadley v
Baxendale, since they are within the type of loss which would naturally
flow from the breach. However, a lucrative contract would come within
the second limb and would only be recoverable if the buyer had brought
the existence of this contract to the attention of the seller at the
time the contract was made.
Aneela Akbar is a trainee solicitor and can be
contacted at email@example.com
About the Author
Solicitors offer services and advice for litigation,
commercial contracts, Intellectual Property and IT legal agreements. We
are experts in commercial law with a heavy emphasis on Intellectual
Property, Internet and e-commerce law. Lawdit is a member of the
International Trademark Association, the Solicitors' Association of
Higher Court Advocates and we are the appointed Solicitors to the
largest webdesign association in the world, the United Kingdom Website
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2012-04-12 12:46:34 in Legal Articles