Problem scenarios in Consumer Law Case Study Example | Topics and Well Written Essays - 2250 words

Problem scenarios in Consumer Law - Case Study Example But the primary liability still lies with the seller who effected the sale transaction. In addition, when the goods are sold in the course of a business there is the additional protection available to the buyer in terms of the provisions of Unfair Contract Terms Act 1977 which prohibits their exclusion. The protections constitute statutorily laid implied terms of sale. The meaning of this is that SGA will render these terms made applicable to all contracts for sale of goods irrespective of whatever terms and conditions the parties to the sale have agreed at the time of entering into the contract of sale. Under Contract law there are three categories of terms are applied for the contracts. They are (i) conditions, (ii) warranties, (iii) innominate terms Conditions are the main terms of a contract which forms the nucleus of the contract. When the condition attached to a contract is breached the innocent party can claim damages and repudiate the contract. Damages represent monetary compensation for the loss suffered by buyer. Repudiation is the avoidance of the contract which has the effect of relieving both the parties to the contract from the obligations under the contract. Warranties represent technical legal term which corre... Damages represent monetary compensation for the loss suffered by buyer. Repudiation is the avoidance of the contract which has the effect of relieving both the parties to the contract from the obligations under the contract. Warranties Warranties represent technical legal term which corresponds to minor contractual terms. These terms are less important terms of the agreement between the parties. For the breach of any warranty the party who suffered losses can only claim damages. He cannot repudiate the contract totally. Innominate Terms Innominate terms are those terms attached to the contract which cannot be classified either as condition or warranty just by looking at the terms of the contract. These terms can be classified either as condition or warranty only looking at the effect of the breach. When the consequences of the breach are only slight not causing any major loss to the buyer it will be treated as a warranty. On the other hand when the impact of breach is great it will be categorized as a condition. Implied Term with Respect to Goods sold by Description Section 13(1) provides for the implied term that when the goods are sold by description the goods shall correspond with the description. For making this section apply the goods should have been sold exclusively by description.1 This provision shall not apply when the buyer sees the goods physically before the sales takes place. This position has been clearly explained in the case of Harlington & Leinster Enterprises v Christopher Hull Fine Art2 In this case the purchasers were unable to claim damages under section 13 when the painting they bought thinking as done by a famous artist turned out to be