Supply of Goods (Implied Terms) Act 1973

JurisdictionUK Non-devolved
Citation1973 c. 13
an implied F3term on the part of the creditor that he will have a right to sell the goods at the time when the property is to pass; andthe goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance not disclosed or known to the person to whom the goods are bailed or (in Scotland) hired before the agreement is made, andthat person will enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed or known.an implied F3term that all charges or encumbrances known to the creditor and not known to the person to whom the goods are bailed or hired have been disclosed to that person before the agreement is made; andthe creditor; norin a case where the parties to the agreement intend that any title which may be transferred shall be only such title as a third person may have, that person; noranyone claiming through or under the creditor or that third person otherwise than under a charge or encumbrance disclosed or known to the person to whom the goods are bailed or hired, before the agreement is made;(3) As regards England and Wales and Northern Ireland, the term implied by subsection (1) (a) above is a condition and the terms implied by subsections (1) (b) , (2) (a) and (2) (b) above are warranties.(1) Where under a F30relevant hire-purchase agreement goods are bailed or (in Scotland) hired by description, there is an implied F6termthat the goods will correspond with the description, and if under the agreement the goods are bailed or hired by reference to a sample as well as a description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.(1A) As regards England and Wales and Northern Ireland, the term implied by subsection (1) above is a condition.(2) Goods shall not be prevented from being bailed or hired by description by reason only that, being exposed for sale, bailment or hire, they are selected by the person to whom they are bailed or hired.(1) Except as provided by this section and section 11 below and subject to the provisions of any other enactment, including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly, there is no implied F9term as to the quality or fitness for any particular purpose of goods bailed or (in Scotland) hired under a F30relevant hire-purchase agreement.(2) Where the creditor bails or hires goods under a F30relevant hire-purchase agreement in the course of a business, there is an implied term that the goods supplied under the agreement are of satisfactory quality.(2A) For the purposes of this Act, goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price (if relevant) and all the other relevant circumstances.fitness for all the purposes for which goods of the kind in question are commonly supplied,appearance and finish,freedom from minor defects,safety, anddurability.which is specifically drawn to the attention of the person to whom the goods are bailed or hired before the agreement is made,where that person examines the goods before the agreement is made, which that examination ought to reveal, orwhere the goods are bailed or hired by reference to a sample, which would have been apparent on a reasonable examination of the sample(((to the creditor in the course of negotiations conducted by the creditor in relation to the making of the F30relevant hire-purchase agreement, orto a credit-broker in the course of negotiations conducted by that broker in relation to goods sold by him to the creditor before forming the subject matter of the F30relevant hire-purchase agreement,(4) An implied condition or warranty as to quality or fitness for a particular purpose may be annexed to a F30relevant hire-purchase agreement by usage.(5) The preceding provisions of this section apply to a F30relevant hire-purchase agreement made by a person who in the course of a business is acting as agent for the creditor as they apply to an agreement made by the creditor in the course of a business, except where the creditor is not bailing or hiring in the course of a business and either the person to whom the goods are bailed or hired knows that fact or reasonable steps are taken to bring it to the notice of that person before the agreement is made.

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