Q&As

If in a business to business contract for the provision of goods, the buying party rejects goods alleging non-compliance with one or more of the implied terms in the Sale of Goods Act 1979 as to quality, fitness for purposes etc and insists that the seller comes and takes the goods away, can the selling party 'safely' agree to take the goods back without prejudice to its right to sue for payment of them?

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Produced in partnership with Lynne Counsell of 9 Stone Buildings
Published on LexisPSL on 28/08/2020

The following Commercial Q&A produced in partnership with Lynne Counsell of 9 Stone Buildings provides comprehensive and up to date legal information covering:

  • If in a business to business contract for the provision of goods, the buying party rejects goods alleging non-compliance with one or more of the implied terms in the Sale of Goods Act 1979 as to quality, fitness for purposes etc and insists that the seller comes and takes the goods away, can the selling party 'safely' agree to take the goods back without prejudice to its right to sue for payment of them?
  • Sale of Goods Act 1979 (SGA 1979)—implied terms
  • SGA 1979—remedies
  • Summary

Sale of Goods Act 1979 (SGA 1979)—implied terms

SGA 1979 contains detailed provisions about contracts for the sale of goods, including the formalities of the contract, transfer of title, performance and remedies.

See: Sale and supply of goods—overview and Practice Note: Contracts for the sale and supply of goods—business to business.

The implied terms referred to in the question are contained in SGA 1979, Pt II and include the following:

  1. time—unless a different intention appears from the term of the contract, stipulations as to the time of payment are not of the essence in a contract for the sale of goods: SGA 1979, s 10

  2. title—the seller has the right to sell the goods, they are free from encumbrances other than those disclosed to the buyer and the buyer will have quiet possession of the goods: SGA 1979, s 12

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