Q&As

Is there any guidance for determining the reasonable price of services under section 15 of the Supply of Goods and Services Act 1982?

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Published by a LexisNexis Commercial expert
Published on: 15 March 2017
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Implied term—price

As is noted in Practice Note: Implied terms in contracts for goods and services, terms implied by statute aim to improve efficiency or provide protection for one of the parties to a contract.

Section 15 of the supply of goods and Services Act 1982 (SGSA 1982) provides:

  1. •

    where, under a relevant contract for the supply of a service, the consideration for the service is not determined by the contract, left to be determined in a manner agreed by the contract or determined by the course of dealing between the parties, there is an implied term that the party contracting with the supplier will pay a reasonable charge, and

  2. •

    what is a reasonable charge is a question of fact

SGSA 1982, s 12 defines ‘relevant contract for the supply of a service’ as a contract under which a person (‘the supplier’) agrees to carry out a service, other than a contract to which Chapter 4

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Supply of goods definition
What does Supply of goods mean?

VAT is charged on a supply of goods.

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