Supply of Goods and Services Act 1982

Summary

The Supply of Goods and Services Act 1982 implies terms into contracts for the supply of goods (other than by sale or hire-purchase) and contracts for the supply of services. Part I implies terms about title, description, quality, fitness for purpose, and sample into contracts for the transfer of goods and hire contracts. Part II implies terms into contracts for the supply of services: that the supplier will carry out the service with reasonable care and skill, within a reasonable time, and for a reasonable charge. For consumer contracts, it has been largely superseded by the Consumer Rights Act 2015.

Key Points

• Implied term of reasonable care and skill in service contracts (s.13)
• Implied term of reasonable time for performance if not fixed by the contract (s.14)
• Implied term of reasonable charge if price not determined by the contract (s.15)
• Implied terms about title, description, quality, and fitness in goods transfer contracts (ss.2–5)
• Implied terms about description, quality, and fitness in hire contracts (ss.7–10)
• Now applies primarily to B2B service contracts; consumer contracts governed by CRA 2015
• Part I — implied terms in contracts for transfer of goods (e.g., work and materials): title, description, quality, fitness, sample
• Part IB — implied terms in hire contracts: similar to Part I
• Section 13 — implied term that services will be carried out with reasonable care and skill
• Section 14 — implied term that services will be performed within a reasonable time (where not fixed)
• Section 15 — implied term of reasonable charge (where not determined by contract)
• Consumer contracts now governed by Consumer Rights Act 2015

Parts & Sections

Amendments History

Frequently asked questions

What does the Supply of Goods and Services Act 1982 do?

The Supply of Goods and Services Act 1982 implies specific terms into contracts for the supply of goods (excluding sales or hire-purchase) and services. For goods, it covers title, description, quality, and fitness. For services, it ensures work is done with reasonable care and skill, within a reasonable time, and for a reasonable charge. It now primarily applies to business-to-business contracts, as consumer agreements are governed by the Consumer Rights Act 2015.

Does this Act still apply to consumer contracts?

No, the Act no longer applies to consumer contracts. These are now governed by the Consumer Rights Act 2015, which removed consumer agreements from the scope of the 1982 Act. The Supply of Goods and Services Act 1982 continues to apply primarily to business-to-business contracts for the supply of goods and services.

What standard of care is required for services under this Act?

Yes, if the supplier is acting in the course of a business, there is an implied term that the service will be carried out with reasonable care and skill. This is a standard requirement under the Act for service contracts where the supplier is a business entity.

What happens if the contract does not specify a deadline for the service?

If the contract does not fix a specific time for the service to be carried out, there is an implied term that the supplier will perform the service within a reasonable time. This ensures that even without a set deadline, the work must be completed in a timeframe that is fair and appropriate for the circumstances.

How is the price determined if it is not stated in the contract?

If the price or consideration is not determined by the contract, there is an implied term that the party contracting with the supplier will pay a reasonable charge. This prevents disputes over payment when the agreement is silent on the specific cost of the service provided.