The circular economy and the implied terms of contract in English sales law
| Date | 16 November 2020 |
| Published date | 16 November 2020 |
| DOI | https://doi.org/10.1108/JPPEL-09-2020-0042 |
| Pages | 31-45 |
| Subject Matter | Property management & built environment,Building & construction,Building & construction law,Real estate & property,Property law |
| Author | Reza Beheshti |
The circular economy and the
implied terms of contract in
English sales law
Reza Beheshti
University of Nottingham, Nottingham, UK
Abstract
Purpose –The purpose of this articleis to examine the contractual framework for the sale of goodsin order
to gauge whetherthe English sales law regime can promotea circular business model.
Design/methodology/approach –Theoreticaland doctrinal legal analysis.
Findings –Due to the absence of rules and regulationsrequiring manufacturers produce goods compliant
with the circular economy (CE), English Sale of Goods Act has limited capacity in holding manufacturers
accountable and liable in failing to manufacture goods compliant with the CE. The onlycurrently practical
solution for this gap is that the buyers should ensure that their particular intention of obtaining goods
compliantwith the CE is fully communicated to manufacturers.
Originality/value –This is the first examination of the implied terms of English sales law from the
perspectiveof the CE.
Keywords Circular economy, Buyer’s rights, English sale of goods, Implied terms,
Satisfactory quality, Seller’s duties
Paper type Research paper
1. Introduction
In the context of policy and business development, the circular economy (CE) is a
significant approach in achieving environmentally sustainable economic development
(Korhonen et al., 2018;Merli et al.,2018;Ellen MacArthur Foundation, 2013). This vision
is supported and reinforced by dissatisfaction with the traditional linear “take-make-
dispose”model, which relies heavily on large quantities of easily accessible resources and
energy. The take-make-dispose model encourages cost-effectiveness over eco-efficiency.
This model is predominantly set up for products to be manufactured more quickly and
cheaply, but not necessarily resulting in products of high quality and with a lengthy
lifespan. Conversely, CE offers a powerful business model whereby consumption is
cyclical and regenerative.
This article analyses the contractual framework for the sale of goods to determine
whether the English sales law regime can promote the guiding principles of the CE. It
specifically examines whether–and, if so, to what extent –a manufacturer, who is a “seller”
in the context of private sales agreement [1], is liable for failingto comply with the guiding
The author would like to thank Dr Sean Thomas for inspiring him in conducting research concerning the
relationship between the law of sale of goods and the Circular Economy. He is grateful to the peer
reviewers for their helpful comments on earlier drafts of this article. He is also particularly thankful to his
wife, Narjes Golestani, for all her invaluable kindness and support. The usual disclaimer applies.
English sales
law
31
Received23 September 2020
Revised2 October 2020
Accepted2 October 2020
Journalof Property, Planning and
EnvironmentalLaw
Vol.13 No. 1, 2021
pp. 31-45
© Emerald Publishing Limited
2514-9407
DOI 10.1108/JPPEL-09-2020-0042
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