Terms Implied by Statute
Implied terms are cumulative. So, the terms implied by the Sale of Goods Act 1979 apply concurrently with the terms implied by any other Act which implies terms into contracts. Some of the most commonly implied terms from the application of the arise by virtue of the Supply of Goods and Services Act 1982 and the Sale of Goods Act 1979. Contracts for the Sale and Supply of Goods
In a contract of sale of goods, terms of implied that the seller has the right to sell the goods; that the purchaser will enjoy quiet possession of the goods, allowing them to use the goods without interference from a third party or the supplier; and that the goods are free and will remain so when the property is to pass from any charge or encumbrance, not disclosed to the buyer before the contract is made. Although these may not appear of particular interest, an instance of their importance may be drawn from an application of trade mark law. In the event that a proprietor purchases a registered trade mark with a business, it is an implied term of that contract that the purchaser will not be subject to claims of ownership by predecessors in title to the vendor of the trade mark.
Contracts for the Supply of Services
In a contract for supply of services, where the supplier is acting in the course of business terms are implied that the supplier will exercise reasonable skill and care in delivering the services, the services will be carried out within a reasonable time, unless a specific time-frame has been agreed. A 'reasonable time’ in this context is to be determined by what the parties had in mind at the time of the formation of the contract. Where no fee has been agreed, a reasonable charge will by implied for the provision of the services. Furthermore the services must be of a satisfactory quality and fit for the purpose for which they were intended http://www.gillhams.com/articles/142.cfm
The Sale of Goods Act (Ont. s. 2; U. K. s. 62) provides: "Property" shall mean the general property in goods, and not merely a special property. "Delivery" shall mean voluntary transfer of possession from one person to another. "Sale" shall include a bargain and sale as well as a sale and delivery. A gift of a chattel inter vivos, if not made by deed, is not complete until delivery, the change of possession being an essential part of the act of giving, though the delivery may precede, instead of accompanying or following, the words of gift. A contract to pledge a specific chattel, even though money be advanced on the faith of it, is not in itself sufficient to pass any special property in the chattel to the pledgee. Delivery is, in addition, necessary to complete the pledge, but it is enough if the delivery be constructive, or symbolical, instead of actual. On the other hand delivery is not essential to a sale. By the law of England, which differs in this respect from the civil law and those laws founded upon it, including the Scottish law, a bargain and sale, a contract for valuable consider ation, by which it is agreed that the property in a specific chattel shall pass, is effectual to transfer the property without delivery. By the property in goods is meant the ownership or general property, "the" property - as distinguished from "a" property, that is, merely a special property which one person may have in another person's goods. The owner of goods may transfer a special property (for instance, to a pledgee) and retain the general property. The general property may be transferred subject to a special property (as in a sale by a pledgor subject to the pledgee's rights). The general property ordinarily includes the right to possession, but the right to possession and the property may be separated. The property may be transferred and the possession retained by virtue of the unpaid seller's lien. It may be important on various grounds to ascertain precisely when the property passes. (1) The goods are usually at the...
Cited: Creditfit, 2009.
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