Contract to Supply Services (AQA A-Level Law): Revision Notes

Contract to Supply Services

Overview of service contracts under the Consumer Rights Act 2015

The Consumer Rights Act 2015 governs contracts between traders and consumers, including contracts to supply services. This Act implies certain mandatory terms into every service contract, meaning these terms automatically form part of the agreement even if they are not expressly written into the contract itself.

Service contracts involve a trader performing work or providing expertise (such as hairdressing, plumbing, or car repairs), whereas goods contracts involve the sale or transfer of physical products.

Terms implied into contracts to supply services

The Consumer Rights Act 2015 automatically implies two key terms into every contract to supply a service. These terms cannot be excluded by the trader and provide important protection to consumers.

Section 49: reasonable care and skill

Section 49 of the Consumer Rights Act 2015 establishes that every contract to supply a service includes an implied term requiring the trader to perform the service with reasonable care and skill.

This means the trader must demonstrate a competent standard of work appropriate to their trade or profession. The required standard is objective - it is the level of care and skill that would be expected from a reasonably competent trader in that particular field.

Section 52: performance within a reasonable time

Section 52 of the Consumer Rights Act 2015 applies where the contract does not specify when the service should be completed or how the completion time should be determined.

In such cases, the Act implies a term that the trader must perform the service within a reasonable time. What constitutes "reasonable time" is a question of fact - this means it depends on the specific circumstances of each individual case.

Factors that may be relevant when determining whether performance was within a reasonable time include:

• The nature and complexity of the service
• Industry standards and typical timeframes
• Any discussions between the parties about timing
• Whether there were unforeseen complications
• The urgency of the work

Remedies for breach of terms implied into service contracts

When a trader breaches one of the implied terms in sections 49 or 52, the consumer has specific statutory remedies available under the Consumer Rights Act 2015. There are two main remedies for service contracts, which differ significantly from the remedies available for goods contracts.

Section 55: right to repeat performance

Under section 55, the consumer has the right to repeat performance of the service. This is often the primary remedy when a service has been performed inadequately or incompletely.

The right to repeat performance requires:

• The trader to perform the service again, to the extent necessary to complete its performance properly
• Conformity with the original contract - the repeated performance must meet the standards and specifications originally agreed

This remedy gives the consumer the opportunity to have the work done properly without having to pay additional costs or instruct a different trader. The trader must carry out the repeat performance at their own expense.

Section 56: right to price reduction

Under section 56, the consumer has the right to a price reduction. This remedy allows the consumer to require the trader to reduce the price they are required to pay by an appropriate amount.

The price reduction remedy is particularly useful in circumstances where:

• Repeat performance is not practical or possible
• The consumer has lost confidence in the trader's ability to complete the work satisfactorily
• The service has already been completed but falls below the required standard
• Some value was provided but not to the extent promised

The "appropriate amount" of reduction will depend on the circumstances, including how far below the required standard the service fell and what value (if any) the consumer received from the defective performance.

Exam guidance and application

Distinguishing services from goods

In exam scenarios, you must carefully identify whether you are dealing with a contract to supply services or a contract to supply goods. This distinction is crucial because different remedies apply:

Applying the law to scenarios

In exam questions, you may need to:

Identify which sections apply:

• Consider whether the issue involves the standard of work performed (s 49) or the time taken (s 52)
• Determine whether the trader has breached the implied term

Explain the legal position:

• State the relevant implied term clearly
• Explain what the term requires of the trader
• Discuss whether a breach has occurred

Analyse the available remedies:

• Consider whether repeat performance (s 55) would be appropriate
• Evaluate whether price reduction (s 56) would be more suitable
• Explain the requirements for each remedy
• Assess which remedy best fits the consumer's position

Apply to the facts:

• Use the specific details provided in the scenario
• Consider practical factors (such as whether the consumer would trust the trader to redo the work)
• Reach a supported conclusion about the likely outcome

Exam technique tips

When answering questions on service contracts:

• Begin by clearly identifying that the contract is for the supply of services
• Quote the relevant sections of the Consumer Rights Act 2015
• Explain the implied terms before discussing breach
• Link the facts of the scenario to the legal requirements
• Consider both available remedies and justify which is most appropriate
• Use precise legal terminology (trader, consumer, reasonable care and skill, reasonable time)