Supply of Goods and Services Act 1982

[F1 Contracts for the hire of goods S

Textual Amendments

F1 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para.1 (with s. 8(3))

11G F2 The contracts concerned. S

(1) In this Act in its application to Scotland a “contract for the hire of goods” means a contract under which one person (“the supplier”) hires or agrees to hire goods to another, 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) hired in exchange for trading stamps on their redemption.

(3) For the purposes of this Act in its application to Scotland 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 hire or agreement to hire.

Textual Amendments

F2 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para. 1 (with s. 8(3))

11H F3 Implied terms about right to transfer possession etc. S

(1) In a contract for the hire of goods there is an implied term on the part of the supplier that—

(a) in the case of a hire, he has a right to transfer possession of the goods by way of hire for the period of the hire; and

(b) in the case of an agreement to hire, he will have such a right at the time of commencement of the period of the hire.

(2) In a contract for the hire of goods there is also an implied term that the person to whom the goods are hired will enjoy quiet possession of the goods for the period of the hire 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 person to whom the goods are hired before the contract is made.

(3) The preceding provisions of this section do not affect the right of the supplier to repossess the goods under an express or implied term of the contract.

Textual Amendments

F3 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para.1 (with s. 8(3))

11I F4 Implied terms where hire is by description. S

(1) This section applies where, under a contract for the hire of goods, the supplier hires or agrees to hire the goods by description.

(2) In such a case there is an implied term that the goods will correspond with the description.

(3) If under the contract the supplier hires or agrees to hire the goods by reference to a 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 person to whom the goods are hired.

Textual Amendments

F4 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para.1 (with s. 8(3))

11J F5 Implied terms about quality or fitness. S

(1) Except as provided by this section and section 11K below and subject to the provisions of any other enactment, there is no implied term about the quality or fitness for any particular purpose of goods hired under a contract for the hire of goods.

(2) Where, under such a contract, the supplier hires goods in the course of a business, there is an implied term that the goods supplied under the contract are of satisfactory quality.

(3) For the purposes of this section and section 11K below, 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 consideration for the hire (if relevant) and all the other relevant circumstances.

(4) The term implied by subsection (2) above does not extend to any matter making the quality of goods unsatisfactory—

(a) which is specifically drawn to the attention of the person to whom the goods are hired before the contract is made, or

(b) where that person examines the goods before the contract is made, which that examination ought to reveal; or

(c) where the goods are hired by reference to a sample, which would have been apparent on reasonable examination of the sample.

(5) Subsection (6) below applies where, under a contract for the hire of goods, the supplier hires goods in the course of a business and the person to whom the goods are hired, expressly or by implication, makes known—

(a) to the supplier 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 conducted by that broker in relation to goods sold by him to the supplier before forming the subject matter of the contract,

any particular purpose for which the goods are being hired.

(6) In that case there is (subject to subsection (7) below) an implied term 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.

(7) Subsection (6) above does not apply where the circumstances show that the person to whom the goods are hired does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the hirer or credit-broker.

(8) An implied term about quality or fitness for a particular purpose may be annexed by usage to a contract for the hire of goods.

(9) The preceding provisions of this section apply to a hire by a person who in the course of a business is acting as agent for another as they apply to a hire by a principal in the course of a business, except where that other is not hiring in the course of a business and either the person to whom the goods are hired knows that fact or reasonable steps are taken to bring it to that person’s notice before the contract concerned is made.

Textual Amendments

F5 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para. 1 (with s. 8(3))

F6 11K Implied terms where hire is by sample. S

(1) This section applies where, under a contract for the hire of goods, the supplier hires or agrees to hire the goods by reference to a sample.

(2) In such a case there is an implied term—

(a) that the bulk will correspond with the sample in quality; and

(b) that the person to whom the goods are hired will have a reasonable opportunity of comparing the bulk with the sample; and

(c) that the goods will be free from any defect, making their quality unsatisfactory, which would not be apparent on reasonable examination of the sample.

(3) For the purposes of this section a supplier hires or agrees to hire goods by reference to a sample where there is an express or implied term to that effect in the contract concerned.]

Textual Amendments

F6 Pt. IA (ss. 11A-11L) with Pt. heading and cross headings inserted (3.1.1995) by 1994 c. 35, ss. 6, 8(2), Sch. 1 para. 1 (with s. 8(3))