Caveat Emptor Sales of Good Act Implied Terms

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The Latin principle of caveat emptor literally meaning let the buyer beware, has been followed for many years by the English courts in the context of business transactions. Pre the industrial revolution the action for breach of contractual rights needed a written warranty otherwise action could only be brought on the grounds of fraud. The reasoning for such action was based on the manner in which business was conducted, that is, namely at small fairs where buyers could inspect the goods and haggle accordingly. This is evidenced in cases such as Chandelor v Lopus in which a plaintiff brought an action against the defendant in relation to a Bezoar stone which was thought to have medicinal properties. In this instance, the majority of the court ruled that in the absence of a written warranty the defendant could be not liable however, the period surrounding and following the industrial revolution saw a change in how sellers conducted their business, as a result the courts and law makers began to recognise the need for non-written warranties to be upheld and the obligations thereby placed on sellers in relation to the quality of their goods. The culminative effect of which was the introduction of the Sale of Goods Act 1893. It was the introduction of this legislation and the subsequent Sale of Goods Act 1979 which was modified to bring the legislation in line with modern consumerism that purports to have brought to an end the principle of caveat emptor. In particular the implied terms stipulated in sections 12-15 of the Sale of Goods Act 1979, which are labelled as either conditions or warranties. The effect of a breach of a condition will allow the innocent party to repudiate the contract, whereas a breach of warranty will give rise ... ... middle of paper ... ...ne v General Guarantee Corporation [1988[ 1 ALL ER 911 Stevenson v Rodgers [1999] 1 ALL ER 613 Legislation: Sale and Supply of Goods Act 1994 Sale of Goods Act 1979, Unfair Contract Terms Act 1977, s6 Directives: Council Directive 1999/44/EC of the 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees Law Reports: Law Commission, Sale and Supply of Goods (Law Com No 160 1987) Articles: Cynthia Hawes, ‘Agents and Consumer Guarantees’ (1995) 6 Canterbury Law Review 164 Frank Cavico, ‘Fraudulent, Negligent, and Innocent Misrepresentation in Employment Context: The Deceitful, Careless, and Thoughtless Employer (1997) 20 Campbell Law Review 1 Books: Atiyah P, Adams J and MacQueen H, Sale of Goods (12th edn , Longman 2010) 145 Scott C and Black J, Cranston’s Consumers and the Law (3rd London Butterworths, 2000) 17

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