How consumers are protected in contracts for the sale Essay
How consumers are protected in contracts for the sale
Goods are any form of products that are supplied to consumers for their convenience. They are generally modelled as having diminishing marginal utility. Ultimately, whether an object is a good or a bad depends on each individual consumer and therefore, it is important to realize that not all goods are good all the time and not all goods are goods to all people. Sourced: http://en.wikipedia.org/wiki/Good_(economics)
Role of the Sales of Goods Act 1979:
The Sales of Goods Act 1979 gives consumers the opportunity of returning or exchanging products which do not fit the description for example, if a consumer has joined a new contract with the O2 and have been told that with the new contract they get a contract phone in black, however on the day when the phone arrives its white then the consumer can take their problem straight back to O2 and they would have to change the product straight away as it doesn’t look like what it is said to. Also if the contract clearly states that it will be a particular phone and turns out to be a different make then O2 would have to make sure the exchange the products and supply the customer with the one they have stated.
Express Terms of the Sales of Goods Act 1979:
An express term of a contract is a declaration which is made by two or more organisations; and has agreed upon what is stated in the contract, the contracts can be made through verbal methods or by word of mouth. Once the contract has been agreed upon both the organisations have to make sure the follow the deal.
Conditions: A condition is a term which has to be followed within the agreement, For example, if O2 are selling their phone contract to customers, whereas supply customers with a different phone contract then it shows that O2 did there bit of providing the customer with a mobile phone contract however didn’t provide them with the right one. A breach of contract will entitle O2 to follow the correct law of the contract and provide the consumer with the right one.
Warranties: A warranty is a term that does not fully follow all agreements, so For example, carrying on from the O2 phone contract issue , when the customers buys the phone contract and is assured by the company that they will receive a special tariff with the contract. Therefore, when the phone contract arrives on the day there is no extra tariff, when the party doesn’t stick to its word then this is seen as a warranty. The customer is able to sue the supplier however it doesn’t mean that the agreement will end. Implied terms of the Sales of Goods Act 1979:
There are sequence of conditions which are automatically prepared in every contract by the sales of goods act; and they would be dealing with the following which include: title, description, fitness for purpose and satisfactory quality. I have stated these factors below and explained what each and every one of them means:
Title: this is when there is an implied condition which allows the sellers to have the right to sell the goods for example, O2 impliedly confirms that the phone contract it sells actually belong to it and also that it can legally pass on the ownership to another telecommunications company, however if O2 are not able to pass on the title to the buyers then it will mean that O2 will be liable for breach for the contract.
Description: the contract must fully explain how the product has been described, when there is a contract for the sales of goods by description then there will be an implied condition that the goods will correspond with that description. However the slightest removal from the description will then enable the buyer into rejecting the goods for breach of condition of the contract made.
Fitness for purpose: A fitness for purpose is where a seller who in this case is O2 plans to sell its goods in the good courses of their business, for example if O2 was to sell their contract to the consumers for the business to be better and make more sales. There is an implied condition for this was they are fit for the particular purpose, this means that the buyer (consumer) has expressly or impliedly known to the seller.
Satisfactory quality: The satisfactory quality is where the sellers sell goods for the good of their business; there is an implied term that the goods that is supplied are of the right satisfactory quality. However except to the extent of defects which are brought straight to the buyer’s attention, this will be done before the contract is made meaning that T-Mobile will need to sell satisfactory quality to their consumers.
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: There are many factors that can make a contract invalidated, which means that the contracts cannot be used anymore, such as the following:
Misrepresentation: Misrepresentation is where there is a false statement in the contract which is made by one of the parties to the other before the contract is agreed on. There is no general duty to disclose facts, and silence will not normally amount to a misrepresentation. But gestures, smiles or a course of conduct may amount to a representation. Duress: Duress is where a party enters into a contract against their will for example, if O2 is forced into a contract by either violence or treat of violence to themselves or to their family then it means that the contract that is being made may become invalid. In this case the affected party can avoid the contract on the ground of duress; this is because all parties who are entering a contract must enter freely. Mistake: In general terms a mistake is when a contract is being made however one of the party members may have made a mistake in knowing what they are agreeing to or a contract can be made which turns out to be wrong, this is down to a mistake occurring, sometimes when there is a mistake in a contract it can make it invalidated.