Guide

Avoid unfair terms in sales contracts

Last updated: 7 December 2017

Implied and statutory rights

Your customers have implied rights when buying your goods or services.

Some implied rights are also known as 'statutory rights'.

Products

Implied rights mean a product must be:

  • as described
  • of satisfactory quality (eg safe, in working order, free of defects)
  • fit for purpose - capable of doing what the customer has asked for

Contracts for hiring, hire purchase and part exchange also have these implied rights.

Consumers always have these implied rights when buying goods - the contract can't legally state otherwise.

Services

Implied rights mean services must be carried out:

  • with reasonable care and skill
  • within a reasonable time (if no specific time has been agreed)
  • for a reasonable charge (if no exact price has been agreed)

You're unlikely to be able to enforce terms in a consumer contract for services if they try to deny a customer's implied rights.

Business contracts

Your business customers have implied rights unless the contract legally states otherwise in a way a court would decide is reasonable.

Avoid unfair terms in sales contracts
Implied and statutory rights