Statutory Implied Terms

• Implied terms are terms in a contract which are not expressly agreed between the parties but are implied into a contract by common law or by statute.
• The Consumer Rights Act 2015 (CRA) is the main legislation. The CRA 2015 applies to consumer contracts which are contracts between a trader (someone acting for purposed relating to their trade, business, craft or profession - s.2(2) CRA 2015) and consumers (someone acting for purposes wholly or mainly outside their trade, business, craft or profession - s.2(3) CRA 2015).
• In terms of the sale of goods, s.9 implies a term that the consumer has a right to goods of satisfactory quality but this will not apply if the consumer was notified of the defects; had examined the goods before the contract was made or had time to inspect samples and the defect was clear. In Rogers v Parish (Scarborough) Ltd, Lord Mustil held that satisfactory quality was whether a reasonable person would believe that the item was in the condition and had the features expected for the price.
• S.10 implies a term that the consumer has a right to goods that are reasonably fit for purpose if the consumer tells the trader (either expressly or implied it) what the goods are before the contract is made; Grant v Australian Knitting Mill.
• S.11 implies a term that the consumer has a right to goods matching the description, this was the case in Beale v Taylor.
• Remedies under the CRA 2015 for sale of goods include s.20 which is the short-term right to reject. Under s.22 this right can be exercised up to 30 days after the purchase (less for perishable goods e.g. fresh flowers) and allows a consumer to reject goods and get a full refund (within 14 days of return) with the trader covering the reasonable costs of return. The refund should be in the same way as payment was made.
• S.23 gives a right to repair or replacement within a reasonable time. 'Reasonable time' has no definition but should be within 6 months. The trader should have at least one opportunity to fix the goods but not if it is impractical or impossible to repair or replace the item.
• S.24 gives the right to have a price reduction or a final right to reject the goods if the trader does not complete the repair or does not complete it to a satisfactory standard. Any refund to the consumer may be reduced by a deduction for use, but not if the final right to reject is within 6 months of purchase.