C. THE UNFAIR CONTRACT TERMS ACT 1977
The basic purpose of UCTA 1977 is to restrict the extent to which liability in a contract can be excluded for breach of contract and negligence, largely by reference to a reasonableness requirement, but in some cases by a specific prohibition.
S.6(2) states that as against a person dealing as consumer, liability for breach of the obligations arising from ss.13, 14 or 15 of the Sale of Goods Act 1979 (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose) cannot be excluded or restricted by reference to any contract term.
Exclusion clauses subject to reasonableness
S.6(3) states that as against a person dealing
…show more content…
(2) Whether the customer received an inducement to agree to the term. (The supplier may have offered the customer a choice: a lower price but subject to an exemption clause or a higher price without the exemption.)
(3) Whether the customer knew or ought reasonably to have known of the existence and extent of the term.
(4) Where the term excludes or restricts any relevant liability if some condition is not complied with, whether it was reasonable at the time of the contract to expect that compliance with that condition would be practicable.
(5) Whether the goods were manufactured, processed or adapted to the special order of the custom
The Regulations apply, with certain exceptions, to unfair terms in contracts concluded between a consumer and a seller or supplier and provide that an unfair term is one which has not been individually
8. When is a buyer considered to have accepted performance regarding goods that are delivered pursuant to a contract?
u. P2) This implies that the seller who intends to enter a contract with a customer has a duty to disclose exactly what the customer is buying and what the terms of the sale are.
To protect both parties in the Co-operative UK breakdown cover contractual agreements, terms are implied into the contract by virtue of legislation. The best example for the fault is the sale of goods act 1979. This sale of goods act has certain terms that have to be followed, such as…
The Australian Consumer Law (ACL) was established to protect consumers in any legal trading activities in Australia. A set of guarantees has also been introduced for those consumers who are acquiring goods and services from Australian suppliers, importers or manufacturers. The guarantees are intended to ensure that consumers will receive the goods or services they have paid for. If they have problems with the products and services they bought, they are entitled for remedies, such as repair, replacement, and refund.
This Act protects consumers from misleading descriptions which the business has said about their products and services. It would be a criminal offence if the business trader was to:
Overall in the briefing sheet I have made sure that all evidence is provided, also that a clear explanation is made of how a contract protects the consumer and what happens if that contract is breached. Mainly information is suggested on the different conditions made by the sales of goods act such as title, description, fitness for purpose and also satisfactory quality. Factors that invalidate contracts:
P2 EXPLAIN THE LAW IN RELATION TO THE FORMATION OF A CONTRACT IN A GIVEN SITUATION
To gain a better understanding of sales contracts, Article 2 of the Uniform Commercial Code outlines the rules and procedures to follow when dealing with contracts. The UCC defines and requires certain standards in the world of contracts for sense of integrity if their formation and performance. When looking to the parol evidence rule, statue of frauds, good faith, and unconscionability, these requirements do exactly what the UCC has initially intended.
This also applies to aspects such as credits, rebates, refunds etc. A business is prohibited from giving favoured treatment to selected customers. This influences Australian businesses and the choices they make through pricing strategies.
This is an express term in a contract, which can enable employees to make changes to an employee's terms and conditions. Flexibility clauses
Contract terms are statements which determine the rights and obligations of the parties who have signed the contract. Sometimes contract terms can be deemed to be unfair as they may be greatly one sided towards one party in the contract. Unfair contract term laws apply to standard form consumer contracts. According to the Australian Consumer Law, a consumer contract is defined as a contract used for the supply of goods or services, or the sale of land which will be used for personal, domestic or household use.
These regulations apply by holding the seller of good and services accountable when they seek a profit by taking advantage of a person’s lack of knowledge. Businesses that provide goods and services must comply with these consumer guarantees; which include the right to safety, with trust that the products
The law of unfair terms in consumer contracts have experienced changes over the years, the most significant of which was the Consumer Rights Act which came into effect on October 1st 2015. However, before the Consumer Rights Act 2015 (CRA 2015), unfair terms in consumer contracts were covered under two pieces of legislation; the Unfair Contract Terms Act 1977(UCTA 1977) and the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR 1999) . The UCTA 1977 and UTCCR 1999 provided liability for transactions occurring in the course of a business as well as business and consumer contracts. Both UCTA 1977 and UTCCR 1999 provided protection for consumers from terms in a contract so as to prevent them from being at a disadvantage for not read contractual terms and conditions. The UCTA 1977 defined a consumer under s.12 (1) (a); as a party dealing not in the course of a business and not holding himself to do so; while in s12 (1) (b) the other party is acting in the course of a business. The UTCCR’s definition was very narrow, Regulation 3 stated that a consumer must be a natural person that is not a legal person e.g. a company who contracts outside his business.
Section 12(1) of the act state that, “A stipulation in a contract of may be a condition or a warranty” explaining that all terms and stipulations of the contract of sale are not of equal important and also of same consequences, however, some of terms are so vital to the contract that their failure to fulfil would cause breach of contract as a whole. Such terms are known as “Conditions”. Further, a term which are not of so vital importance is known as “Warranty”.
The Sale of Goods Act 1979 controls English law transactions between the purchaser and the seller of goods; it also applies to contracts where involving a transfer of the property in goods or an agreement to transfer a consideration in money.