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Section
Supply of Goods and
Services Act 1982
CHAPTER 29
ARRANGEMENT OF SECTIONS
PART I
SUPPLY OF GOODS
Contracts for the transfer of property in goods
1. The contracts concerned.
2. Implied terms about title, etc.
3. Implied terms where transfer is by description.
4. Implied terms about quality or fitness.
5. Implied terms where transfer is by sample.
Contracts for the hire of goods
6. The contracts concerned.
7. Implied terms about right to transfer possession, etc.
8. Implied terms where hire is by description.
9. Implied terms about quality or fitness.
10. Implied terms where hire is by sample.
Exclusion of implied terms, etc.
11. Exclusion of implied terms, etc.
PART II
SUPPLY OF SERVICES
12. The contracts concerned.
13. Implied term about care and skill.
14. Implied term about time for performance.
15. Implied term about consideration.
16. Exclusion of implied terms, etc.
A ii c. 29 Supply of Goods and Services Act 1982
PART III
SUPPLEMENTARY
Section
17. Minor and consequential amendments.
18. Interpretation : general.
19. Interpretation: references to Acts.
20. Citation, transitional provisions, commencement and extent.
SCHEDULE-Transitional provisions. c. 29 1
ELIZABETH II
Supply of Goods and
Services Act 1982
1982 CHAPTER 29
An Act to amend the law with respect to the terms to be
implied in certain contracts for the transfer of the
property in goods, in certain contracts for the hire of
goods and in certain contracts for the supply of a
service; and for connected purposes. [13th July 1982]
BE IT ENACTED by the Queen’s most Excellent Majesty, by and
with the advice and consent of the Lords Spiritual and
Temporal, and Commons, in this present Parliament
assembled, and by the authority of the same, as follows:-
PART I
SUPPLY OF GOODS
Contracts for the transfer of property in goods
1.-(1) In this Act a ” contract for the transfer of goods ” The contracts
means a contract under which one person transfers or agrees to
concerned.
transfer to another the property in goods, other than an excepted
contract.
(2) For the purposes of this section an excepted contract means
any of the following : –
(a) a contract of sale of goods ;
(b) a hire-purchase agreement ;
(c) a contract under which the property in goods is (or is
to be) transferred in exchange for trading stamps on
their redemption ;
A2 2 c. 29 Supply of Goods and Services Act 1982
PART I (d) a transfer or agreement to transfer which is made by
deed and for which there is no consideration other
than the presumed consideration imported by the deed ;
(e) a contract intended to operate by way of mortgage,
pledge, charge or other security.
(3) For the purposes of this Act a contract is a contract for
the transfer of goods whether or not services are also provided
or to be provided under the contract, and (subject to subsection
(2) above) whatever is the nature of the consideration for the
transfer or agreement to transfer.
Implied terms 2.-(1) In a contract for the transfer of goods, other than one
about title,
to which subsection (3) below applies, there is an implied condi-
etc.
tion on the part of the transferor that in the case of a transfer
of the property in the goods he has a right to transfer the
property and in the case of an agreement to transfer the
property in the goods he will have such a right at the time when
the property is to be transferred.
(2) In a contract for the transfer of goods, other than one
to which subsection (3) below applies, there is also an implied
warranty that-
(a) the goods are free, and will remain free until the time
when the property is to be transferred, from any charge
or encumbrance not disclosed or known to the trans-
feree before the contract is made, and
(b) the transferee will enjoy quiet possession of the goods
except so far as it may be disturbed by the owner or
other person entitled to the benefit of any charge or
encumbrance so disclosed or known.
(3) This subsection applies to a contract for the transfer of
goods in the case of which there appears from the contract or
is to be inferred from its circumstances an intention that the
transferor should transfer only such title as he or a third person
may have.
(4) In a contract to which subsection (3) above applies there
is an implied warranty that all charges or encumbrances known
to the transferor and not known to the transferee have been
disclosed to the transferee before the contract is made.
(5) In a contract to which subsection (3) above applies there is
also an implied warranty that none of the following will disturb
the transferee’s quiet possession of the goods, namely-
(a) the transferor ;
(b) in a case where the parties to the contract intend that
the transferor should transfer only such title as a third
person may have, that person ; Supply of Goods and Services Act 1982 c. 29 3
(c) anyone claiming through or under the transferor or that
third person otherwise than under a charge or encum-
brance disclosed or known to the transferee before the
contract is made.
PART I
3.-(1) This section applies where, under a contract for the
Implied terms
transfer of goods, the transferor transfers or agrees to transfer where
the property in the goods by description.
transfer is by
description.
(2) In such a case there is an implied condition that the goods
will correspond with the description.
(3) If the transferor transfers or agrees to transfer the property
in the goods by sample as well as by 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.
(4) A contract is not prevented from falling within subsection
(1) above by reason only that, being exposed for supply, the
goods are selected by the transferee.
4.-(l) Except as provided by this section and section 5 below Implied terms
and subject to the provisions of any other enactment, there is about quality
no implied condition or warranty about the quality or fitness for or fitness.
any particular purpose of goods supplied under a contract for
the transfer of goods.
(2) Where, under such a contract, the transferor transfers the
property in goods in the course of a business, there is (subject
to subsection (3) below) an implied condition that the goods
supplied under the contract are of merchantable quality.
(3) There is no such condition as is mentioned in subsection
(2) above-
(a) as regards defects specifically drawn to the transferee’s
attention before the contract is made ; or
(b) if the transferee examines the goods before the contract
is made, as regards defects which that examination
ought to reveal.
(4) Subsection (5) below applies where, under a contract for
the transfer of goods, the transferor transfers the property in
goods in the course of a business and the transferee, expressly
or by implication, makes known-
(a) to the transferor, or
(b) where the consideration or part of the consideration for
the transfer is a sum payable by instalments and the
goods were previously sold by a credit-broker to the
transferor, to that credit-broker,
any particular purpose for which the goods are being acquired. 4 c. 29 Supply of Goods and Services Act 1982
PART I (5) In that case there is (subject to subsection (6) below) an
implied condition that the goods supplied under the contract are
reasonably fit for that purpose, whether or not that is a purpose
for which such goods are commonly supplied.
(6) Subsection (5) above does not apply where the circum-
stances show that the transferee does not rely, or that it is
unreasonable for him to rely, on the skill or judgment of the
transferor or credit-broker.
Implied”terms
where
transfer is by
sample.
(7) An implied condition or warranty about quality or fitness
for a particular purpose may be annexed by usage to a contract
for the transfer of goods.
(8) The preceding provisions of this section apply to a transfer
by a person who in the course of a business is acting as agent
for another as they apply to a transfer by a principal in the
course of a business, except where that other is not transferring
in the course of a business and either the transferee knows that
fact or reasonable steps are taken to bring it to the transferee’s
notice before the contract concerned is made.
(9) Goods of any kind are of merchantable quality within the
meaning of subsection (2) above if they are as fit for the purpose
or purposes for which goods of that kind are commonly supplied
as it is reasonable to expect having regard to any description
applied to them, the price (if relevant) and all the other relevant
circumstances.
5.-(1) This section applies where, under a contract for the
transfer of goods, the transferor transfers or agrees to transfer
the property in the goods by reference to a sample.
(2) In such a case there is an implied condition-
(a) that the bulk will correspond with the sample in quality ;
and
(b) that the transferee will have a reasonable opportunity of
comparing the bulk with the sample ; and
(c) that the goods will be free from any defect, rendering
them unmerchantable, which would not be apparent
on reasonable examination of the sample.
(3) In subsection (2)(c) above ” unmerchantable ” is to be con-
strued in accordance with section 4(9) above.
(4) For the purposes of this section a transferor transfers or
agrees to transfer the property in goods by reference to a sample
where there is an express or implied term to that effect in the
contract concerned. Supply of Goods and Services Act 1982 c. 29 5
Contracts for the hire of goods PART I
6.-(1) In this Act a ” contract for the hire of goods ” means The contracts
a contract under which one person bails or agrees to bail goods
concerned.
to another by way of hire, other than an excepted contract.
(2) For the purposes of this section an excepted contract means
any of the following : –
(a) a hire-purchase agreement ;
(b) a contract under which goods are (or are to be) bailed in
exchange for trading stamps on their redemption.
(3) For the purposes of this Act a contract is a contract for
the hire of goods whether or not services are also provided or
to be provided under the contract, and (subject to subsection (2)
above) whatever is the nature of the consideration for the bail-
ment or agreement to bail by way of hire.
7.-(l) In a contract for the hire of goods there is an implied
implied terms
condition on the part of the bailor that in the case of a bailment
about right
he has a right to transfer possession of the goods by way of hire
to transfer
for the period of the bailment and in the case of an agreement
possession, etc.
to bail he will have such a right at the time of the bailment.
(2) In a contract for the hire of goods there is also an implied
warranty that the bailee will enjoy quiet possession of the goods
for the period of the bailment except so far as the possession
may be disturbed by the owner or other person entitled to the
benefit of any charge or encumbrance disclosed or known to the
bailee before the contract is made.
(3) The preceding provisions of this section do not affect the
right of the bailor to repossess the goods under an express or
implied term of the contract.
8.-(1) This section applies where, under a contract for the Implied terms
hire of goods, the bailor bails or agrees to bail the goods by where hire
description.
is by
description.
(2) In such a case there is an implied condition that the goods
will correspond with the description.
(3) If under the contract the bailor bails or agrees to bail the
goods 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.
(4) A contract is not prevented from falling within subsection
(1) above by reason only that, being exposed for supply, the
goods are selected by the bailee. 6 c. 29 Supply of Goods and Services Act 1982
PART I 9.-(1) Except as provided by this section and section 10
Implied terms below and subject to the provisions of any other enactment, there
about quality is no implied condition or warranty about the quality or fitness
or fitness.
for any particular purpose of goods bailed under a contract for
the hire of goods.
(2) Where, under such a contract, the bailor bails goods in
the course of a business, there is (subject to subsection (3) below)
an implied condition that the goods supplied under the contract
are of merchantable quality.
(3) There is no such condition as is mentioned in subsection
(2) above-
(a) as regards defects specifically drawn to the bailee’s atten-
tion before the contract is made ; or
(b) if the bailee examines the goods before the contract is
made, as regards defects which that examination ought
to reveal.
(4) Subsection (5) below applies where, under a contract for
the hire of goods, the bailor bails goods in the course of a
business and the bailee, expressly or by implication, makes
known-
(a) to the bailor in the course of negotiations conducted by
him in relation to the making of the contract, or
(b) to a credit-broker in the course of negotiations con-
ducted by that broker in relation to goods sold by him
to the bailor before forming the subject matter of the
contract,
any particular purpose for which the goods are being bailed.
(5) In that case there is (subject to subsection (6) below) an
implied condition that the goods supplied under the contract
are reasonably fit for that purpose, whether or not that is a pur-
pose for which such goods are commonly supplied.
(6) Subsection (5) above does not apply where the circum-
stances show that the bailee does not rely, or that it is unreason-
able for him to rely, on the skill or judgment of the bailor or
credit-broker.
(7) An implied condition or warranty about quality or fitness
for a particular purpose may be annexed by usage to a contract
for the hire of goods.
(8) The preceding provisions of this section apply to a bail-
ment by a person who in the course of a business is acting
as agent for another as they apply to a bailment by a principal
in the course of a business, except where that other is not bailing
in the course of a business and either the bailee knows that fact
or reasonable steps are taken to bring it to the bailee’s notice
before the contract concerned is made. Supply of Goods and Services Act 1982 c. 29 7
(9) Goods of any kind are of merchantable quality within the PART I
meaning of subsection (2) above if they are as fit for the pur-
pose or purposes for which goods of that kind are commonly
supplied as it is reasonable to expect having regard to any
description applied to them, the consideration for the bailment
(if relevant) and all the other relevant circumstances.
10.-(1) This section applies where, under a contract for the Implied terms
hire of goods, the bailor bails or agrees to bail the goods by where hire is
reference to a sample.
by sample.
(2) In such a case there is an implied condition-
(a) that the bulk will correspond with the sample in quality ;
and
(b) that the bailee will have a reasonable opportunity of
comparing the bulk with the sample ; and
(c) that the goods will be free from any defect, rendering
them unmerchantable, which would not be apparent
on reasonable examination of the sample.
(3) In subsection (2)(c) above ” unmerchantable ” is to be
construed in accordance with section 9(9) above.
(4) For the purposes of this section a bailor bails or agrees to
bail goods by reference to a sample where there is an express or
implied term to that effect in the contract concerned.
Exclusion of implied terms, etc.
11.-(1) Where a right, duty or liability would arise under a Exclusion of
contract for the transfer of goods or a contract for the hire of
implied terms,
goods by implication of law, it may (subject to subsection (2)
etc.
below and the 1977 Act) be negatived or varied by express agree-
ment, or by the course of dealing between the parties, or by such
usage as binds both parties to the contract.
(2) An express condition or warranty does not negative a
condition or warranty implied by the preceding provisions of this
Act unless inconsistent with it.
(3) Nothing in the preceding provisions of this Act prejudices
the operation of any other enactment or any rule of law whereby
any condition or warranty (other than one relating to quality
or fitness) is to be implied in a contract for the transfer of goods
or a contract for the hire of goods. 8 c. 29 Supply of Goods and Services Act 1982
PART II
SUPPLY OF SERVICES
The contracts 12.-(l) In this Act a ” contract for the supply of a service ”
concerned. means, subject to subsection (2) below, a contract under which
a person (” the supplier “) agrees to carry out a service.
(2) For the purposes of this Act, a contract of service or
apprenticeship is not a contract for the supply of a service.
(3) Subject to subsection (2) above, a contract is a contract
for the supply of a service for the purposes of this Act whether
or not goods are also-
(a) transferred or to be transferred, or
(b) bailed or to be bailed by way of hire,
under the contract, and whatever is the nature of the considera-
tion for which the service is to be carried out.
(4) The Secretary of State may by order provide that one or
more of sections 13 to 15 below shall not apply to services
of a description specified in the order, and such an order may
make different provision for different circumstances.
(5) The power to make an order under subsection (4) above
shall be exercisable by statutory instrument subject to annul-
ment in pursuance of a resolution of either House of Parliament.
Implied term
about care
and skill.
Implied term
about time for
performance.
13. In a contract for the supply of a service where the supplier
is acting in the course of a business, there is an implied term
that the supplier will carry out the service with reasonable
care and skill.
14.-(1) Where, under a contract for the supply of a service
by a supplier acting in the course of a business, the time for the
service to be carried out is not fixed by the contract, left to be
fixed in a manner agreed by the contract or determined by
the course of dealing between the parties, there is an implied
term that the supplier will carry out the service within a reason-
able time.
(2) What is a reasonable time is a question of fact.
Implied term 15.-(1) Where, under a contract for the supply of a service,
about the consideration for the service is not determined by the con-
consideration.
tract, left to be determined in a manner agreed by the contract
or determined by the course of dealing between the parties,
there is an implied term that the party contracting with the
supplier will pay a reasonable charge.
(2) What is a reasonable charge is a question of fact. Supply of Goods and Services Act 1982 c. 29 9
16.-(1) Where a right, duty or liability would arise under PART II
a contract for the supply of a service by virtue of this Part of Exclusion of
this Act, it may (subject to subsection (2) below and the 1977 implied terms,
Act) be negatived or varied by express agreement, or by the
etc.
course of dealing between the parties, or by such usage as binds
both parties to the contract.
(2) An express term does not negative a term implied by this
Part of this Act unless inconsistent with it.
(3) Nothing in this Part of this Act prejudices-
(a) any rule of law which imposes on the supplier a duty
stricter than that imposed by section 13 or 14 above ;
or
(b) subject to paragraph (a) above, any rule of law whereby
any term not inconsistent with this Part of this Act
is to be implied in a contract for the supply of a
service.
(4) This Part of this Act has effect subject to any other enact-
ment which defines or restricts the rights, duties or liabilities
arising in connection with a service of any description.
PART III
SUPPLEMENTARY
17.-(1) In section 10(2) of the 1973 Act, as originally enacted Minor and
and as prospectively substituted by paragraph 35 of Schedule 4
consequential
to the 1974 Act (implied condition in hire-purchase agreement
amendments.
that goods are of merchantable quality), after ” implied condition
that the goods ” there shall be inserted ” supplied under the
agreement “.
(2) The following subsection shall be inserted after section
7(3) of the 1977 Act:-
” (3A) Liability for breach of the obligations arising
under section 2 of the Supply of Goods and Services Act
1982 (implied terms about title etc. in certain contracts for
the transfer of the property in goods) cannot be excluded
or restricted by reference to any such term.”
(3) In consequence of subsection (2) above, in section 7(4)
of the 1977 Act, after ” cannot ” there shall be inserted ” (in
a case to which subsection (3A) above does not apply) “.
18.-(1) In the preceding provisions of this Act and this Interpretation :
section-
general.
” bailee “, in relation to a contract for the hire of goods
means (depending on the context) a person to whom the 10 c. 29 Supply of Goods and Services Act 1982
PART III goods are bailed under the contract, or a person to
whom they are to be so bailed, or a person to whom
the rights under the contract of either of those persons
have passed ;
” bailor “, in relation to a contract for the hire of goods,
means (depending on the context) a person who bails
the goods under the contract, or ia person who agrees
to do so, or a person to whom the duties under the
contract of either of those persons have passed ;
” business ” includes a profession and the activities of any
government department or local or public authority ;
” credit-broker ” means a person acting in the course of a
business of credit brokerage carried on by him ;
” credit brokerage ” means the effecting of introductions-
(a) of individuals desiring to obtain credit to
persons carrying on any business so far as it relates
to the provision of credit ; or
(b) of individuals desiring to obtain goods on hire
to persons carrying on a business which comprises
or relates to the bailment of goods under a con-
tract for the hire of goods ; or
(c) of individuals desiring to obtain credit, or to
obtain goods on hire, to other credit-brokers ;
” enactment ” means any legislation (including subordinate
legislation) of the United Kingdom or Northern Ire-
land ;
” goods ” include all personal chattels (including emble-
ments, industrial growing crops, and things attached
to or forming part of the land which are agreed to be
severed before the transfer or bailment concerned or
under the contract concerned), other than things in
action and money ;
” hire-purchase agreement ” has the same meaning as in the
1974 Act ;
” property “, in relation to goods, means the general property
in them and not merely a special property ;
” quality “, in relation to goods, includes their state or
condition ;
” redemption “, in relation to trading stamps, has the same
1964 c. 71. meaning as in the Trading Stamps Act 1964 or, as
1965 c. 6. respects Northern Ireland, the Trading Stamps Act
I) (Northern Ireland) 1965 ;
” trading stamps ” has the same meaning as in the said
Act of 1964 or, as respects Northern Ireland, the said
Act of 1965 ; Supply of Goods and Services Act 1982 c. 29 11
” transferee “, in relation to a contract for the transfer of PART III
goods, means (depending on the context) a person to
whom the property in the goods is transferred under
the contract, or a person to whom the property is to be
so transferred, or a person to whom the rights under
the contract of either of those persons have passed ;
” transferor “, in relation to a contract for the transfer
of goods, means (depending on the context) a person
who transfers the property in the goods under the con-
tract, or a person who agrees to do so, or a person to
whom the duties under the contract of either of those
persons have passed.
(2) In subsection (1) above, in the definitions of bailee, bailor,
transferee and transferor, a reference: to rights or duties passing
is to their passing by assignment, operation of law or otherwise.
19. In this Act- Interpretation:
ref ctsences to
” the 1973 Act ” means the Supply of Goods (Implied
Terms) Act 1973 ; A
1973 c. 13.
” the 1974 Act ” means the Consumer Credit Act 1974 ;
1974 c. 39.
” the 1977 Act ” means the Unfair Contract Terms Act 1977 c. 50.
1977 ; and
” the 1979 Act ” means the Sale of Goods Act 1979. 1979 c. 54.
20.-(1) This Act may be cited as the Supply of Goods and Citation,
Services Act 1982.
transitional
provisions,
(2) The transitional provisions in the Schedule to this Act shall
commence-
have effect.
ment and
extent.
(3) Part I of this Act together with section 17 and soy much
of sections 18 and 19 above as relates to that Part shall not
come into operation until 4th January 1983 ; and Part II of this
Act together with so much of sections 18 and 19 above as relates
to that Part shall not come into operation until such day as
may be appointed by an order made by the Secretary of State.
(4) The power to make an order under subsection (3) above
shall be exercisable by statutory instrument.
(5) No provision of this Act applies to a contract made before
the provision comes into operation.
(6) This Act extends to Northern Ireland but not to Scotland. 12 c. 29 Supply of Goods and Services Act 1982
Section 20. SCHEDULE
TRANSITIONAL PROVISIONS
1.-(1) If section 4 of this Act comes into operation before the day
appointed for the purposes of section 14(7) of and paragraph 5 of
Schedule 1 to the 1979 Act, then until that day, section 4 of this Act
shall have effect with the modifications set out in sub-paragraphs (2)
to (4) below.
(2) For subsection (4) substitute : –
” (4) Subsection (5) below applies where, under a contract for
the transfer of goods, the transferor transfers the property
in goods in the course of a business and the transferee, expressly
or by implication, makes known to the transferor any particular
purpose for which the goods are being acquired.”
(3) In subsection (6) omit ” or credit-broker “.
(4) After subsection (9) insert:-
” (10) In the application of subsections (4) to (6) above to a
contract for the transfer of goods under which the consideration
or part of the consideration for the transfer is a sum payable
by instalments any reference to the transferor includes a refer-
ence to the person by whom any antecedent negotiations are
conducted.
1965 c. 66. (11) Section 58(3) and (5) of the Hire-Purchase Act 1965
(meaning of antecedent negotiations and related expressions)
apply, with the appropriate modifications, in relation to sub-
section (10) above as in relation to that Act.”
2.-(1) If section 9 of this Act comes into operation before para-
graph 35 of Schedule 4 to the 1974 Act (which, among other things,
amends section 10(3) of the 1973 Act so as to make it refer to
credit-brokers), then, until the paragraph comes into operation,
section 9 of this Act shall have effect with the modifications set out
in sub-paragraphs (2) to (4) below.
(2) For subsection (4) substitute:-
” (4) Subsection (5) below applies where, under a contract for
the hire of goods, the bailor bails goods in the course of a
business and the bailee, expressly or by implication, makes
known to the bailor or the person by whom any antecedent
negotiations are conducted any particular purpose for which the
goods are being bailed.”
(3) In subsection (6), for ” credit-broker ” substitute ” person by
whom the antecedent negotiations are conducted “.
(4) After subsection (9) insert:-
” (10) Section 58(3) and (5) of the Hire-Purchase Act 1965
(meaning of antecedent negotiations and related expressions)
apply, with the appropriate modifications, in relation to sub-
sections (4) to (6) above as in relation to that Act.”
PRIN’rET5 I1V’-E1VCiND mpW. 7. SITKP””^^
Controller and Chief Executive of er ajesty’s Stationery Office and
Queen’s Printer of s of Parliament c. 29 Supply of Goods and Services Act 1982
LONDON: PUBLISHED BY HER MAJESTY’S STATIONERY OFFICE
£2.10 net
(542922) `..
ISBN 0 10 542982 1
