Contract Terms: Consumer Contracts (AQA A-Level Law): Revision Notes
Contract to Supply Goods
Introduction to the Consumer Rights Act 2015
The Consumer Rights Act 2015 (CRA 2015) is the key legislation governing consumer contracts in England and Wales. This Act simplified and modernized the law relating to consumer rights, making it easier for consumers to understand their entitlements and resolve disputes efficiently.
The Act clearly distinguishes between consumer rights and trader rights. A consumer is an individual acting for purposes wholly or mainly outside their trade, business, craft or profession. A trader is a person acting for purposes relating to their trade, business, craft or profession.
For the first time, the Act also provides protection for digital content, including online movies, games, downloaded music and streamed content. This reflects the changing nature of consumer transactions in the digital age.
Implied terms in contracts to supply goods
Under the Consumer Rights Act 2015, certain fundamental terms are automatically implied into every contract for the supply of goods. These terms cannot be excluded or restricted by traders. The three key implied terms are set out in sections 9, 10 and 11.
Section 9: Satisfactory quality
Section 9(1) automatically implies into every contract for the supply of goods a term that the quality of the goods must be satisfactory.
This is assessed using an objective test (s 9(2)). The goods must meet the standard that a reasonable person would consider satisfactory, taking into account all relevant circumstances.
Section 9(3) specifies that satisfactory quality includes:
- Fitness for purpose – the goods must be suitable for the purposes for which goods of that kind are commonly supplied
- Freedom from minor defects – the goods must not have defects, even minor ones
- Safety – the goods must be safe to use
- Appearance and finish – the goods must look acceptable
- Durability – the goods must remain in satisfactory condition for a reasonable time
When assessing whether goods are of satisfactory quality, the following factors must be considered:
- The description of the goods
- The price paid (or other consideration given)
- Any other relevant circumstances
The quality of goods includes their state and condition at the time of supply.
Important limitation: The implied term does not cover defects that were specifically brought to the consumer's attention before the contract was made. If a trader points out a fault, the consumer cannot later complain about it.
Application of Section 9:
If you buy a television, it must work properly, have no defects, be safe to use, and continue working for a reasonable period. A reasonable person would expect a television to last several years, not break down after a few weeks.
Section 10: Fitness for particular purpose
Section 10 automatically implies a term that goods must be reasonably fit for any particular purpose that the consumer makes known to the trader.
This section applies even if the purpose is not the most common use for that type of goods. The key requirement is that the consumer must make the specific purpose clear to the trader before or at the time of purchase.
Examples of particular purposes:
- Hiking boots suitable for mountain climbing
- Outdoor lights that can withstand all weather conditions
- Waterproof coats for sailing
- Paint suitable for use on metal surfaces
Limitations on Section 10:
The implied term does not apply in two situations:
- Where the consumer does not actually rely on the skill or judgment of the trader
- Where it would be unreasonable for the consumer to rely on the trader's skill or judgment
Application of Section 10:
If you tell a shop assistant you need boots for hiking in Scotland in winter, and they sell you summer walking shoes, those goods would not be fit for the particular purpose you specified.
Section 11: Description
Section 11(1) automatically implies a term that where goods are supplied by description, the goods must match that description.
This applies to goods sold by description, whether in a shop, online, or through a catalogue. The description might appear on packaging, in advertising, on a website, or be given verbally by the trader.
Section 11(2) extends this protection to goods bought by sample. Even if the majority of goods match the sample, if some do not match, there is a breach. Every item must conform to the sample shown.
Application of Section 11:
If you order "100% cotton bed sheets" online, the sheets delivered must actually be 100% cotton. If they are a cotton-polyester blend, they do not match the description, even if they are otherwise good quality.
Remedies for breach of implied terms
If a trader breaches any of the implied terms in sections 9, 10 or 11, the consumer has statutory rights to seek redress. The Consumer Rights Act 2015 provides a tiered system of remedies, giving consumers different options depending on when they discover the problem.
Section 20: Short-term right to reject
Under section 20, consumers have a short-term right to reject goods that do not comply with the contract.
This right normally lasts for 30 days from:
- The date of purchase, OR
- The date of delivery to the consumer (whichever is later)
During this 30-day period, if the goods breach any of the implied terms (satisfactory quality, fitness for purpose, or description), the consumer can:
- Reject the goods completely
- Treat the contract as at an end
- Receive a full refund
The consumer does not have to give the trader an opportunity to repair or replace the goods first. This is the strongest remedy available to consumers.
Application of Section 20:
You buy a laptop that crashes repeatedly within the first week. Under section 20, you can reject it within 30 days and get a full refund without having to accept a repair.
Section 23: Right to repair or replacement
If the consumer does not exercise the short-term right to reject, or if the 30-day period has passed, section 23 provides the right to require the trader to repair or replace the defective goods.
This right applies within six months of delivery.
Section 23(2) imposes two key obligations on traders:
- (a) The trader must carry out the repair or replacement within a reasonable time and without significant inconvenience to the consumer
- (b) The trader must bear all necessary costs of the repair or replacement, including costs of labor, materials, and postage
Section 23(3) provides that consumers cannot insist on a repair or replacement if either option is:
- Impossible to carry out, OR
- Disproportionate compared to the alternative remedy
A remedy is disproportionate if it imposes costs on the trader that are unreasonable compared to other available remedies.
Important rule: If a consumer chooses repair, they cannot then demand replacement or reject the goods unless the trader has been given a reasonable time to complete the repair.
Application of Section 23:
If your washing machine stops working after two months, you can require the trader to repair or replace it. The trader must do this at no cost to you and within a reasonable timeframe.
Section 24: Right to price reduction or final right to reject
Section 24 applies when the consumer has already attempted a repair or replacement under section 23, but the repair or replacement still does not make the goods conform to the contract.
In these circumstances, the consumer has two options:
1. Price reduction: The consumer can require the trader to reduce the price by an appropriate amount. This reduction must reflect the difference between the value of the goods as they are and their value if they had conformed to the contract. The reduction may be the full price if the goods are completely unusable.
2. Final right to reject: The consumer can exercise a final right to reject the goods and receive a full or partial refund. The refund amount may be reduced to take into account any use the consumer has had from the goods.
This section provides an important safety net. If a trader has tried but failed to put things right through repair or replacement, the consumer is not stuck with defective goods.
Application of Section 24:
You buy a television that has poor picture quality. The trader repairs it, but the problem continues. You can then either accept a price reduction to reflect the fault, or reject the television entirely and get a refund.
Implied terms in contracts to supply services
The Consumer Rights Act 2015 also implies terms into contracts for the supply of services, though these are not the main focus of contracts to supply goods.
Section 49: Reasonable care and skill
Section 49 automatically implies into every contract to supply a service a term that the trader must perform the service with reasonable care and skill.
This sets a professional standard. The trader must exercise the level of care and skill that would be expected of a competent professional in that field.
Section 52: Performance within reasonable time
Section 52 applies where the contract does not specify when the service must be performed, or how that time is to be determined.
In such cases, the law implies a term that the service must be performed within a reasonable time. What is reasonable depends on the nature of the service and all the circumstances.
Exam guidance
Assessment: This content is assessed in Paper 2 (Tort Law and Law of Contract).
Key exam skills:
- Be able to identify which section of the Consumer Rights Act 2015 applies to a given scenario (sections 9, 10, or 11)
- Understand the differences between satisfactory quality, fitness for particular purpose, and description
- Apply the tiered remedy system correctly: first rejection (s 20), then repair/replacement (s 23), then price reduction/final rejection (s 24)
- Remember the time limits: 30 days for short-term rejection, six months for repair/replacement
- Use the objective test and reasonable person standard when applying section 9
Common mistakes to avoid:
- Do not confuse the Consumer Rights Act 2015 with the older legislation it replaced (Sale of Goods Act 1979, Supply of Goods and Services Act 1982, Unfair Terms in Consumer Contracts Regulations 1999)
- Do not muddle up the section numbers – learn them carefully
- Remember that section 10 only applies if the consumer makes the particular purpose known to the trader
- Do not forget that defects specifically drawn to the consumer's attention are not covered by section 9
Problem question approach:
- Identify whether this is a consumer contract (individual buying for personal use from a trader)
- Identify which goods or services are involved
- Determine which implied term(s) have been breached (ss 9, 10, and/or 11)
- Work through the remedies in order: has 30 days passed? If not, can reject. If yes, can require repair/replacement. If that fails, can get price reduction or final rejection
- Apply the law to the facts and reach a conclusion about the consumer's rights
Key Points to Remember:
- The Consumer Rights Act 2015 automatically implies three key terms into contracts to supply goods: satisfactory quality (s 9), fitness for particular purpose (s 10), and description (s 11)
- Section 9 uses an objective test based on what a reasonable person would consider satisfactory, taking into account the description, price and all circumstances
- Section 10 only applies if the consumer makes the particular purpose known to the trader and relies on the trader's skill and judgment
- The remedies follow a tiered system: short-term right to reject within 30 days (s 20), then right to repair or replacement within six months (s 23), then price reduction or final right to reject (s 24) if repair/replacement fails
- Do not confuse the Consumer Rights Act 2015 with older legislation – always cite the correct Act and section numbers in your exam answers