Havering Solicitors

What statutory laws and regulations should I bear in mind when drafting my terms and conditions of trading ?

There is a vast array of statutory law and regulations which influence business terms and conditions.  The particular laws and Acts you will be subject to depends on the nature of your business.  If you are a business to consumer business, then consumer laws will be relevant, as well as general contract law and Acts relating to unfair contractual terms.  Businesses dealing with business customers do not have to comply with the high standards expected by consumer laws, but must of course comply with general contractual principles, Acts relating to unfair contractual terms and general commercial law (including the Sale of Goods Act, which protects consumers as well).  There is also a whole host of industry specific legislations and regulations.  E-commerce, for example is regulated by the E-Commerce Regulations 2002.

As we envision many people visiting this site will be dealing with consumers, relevant consumer legislation includes the Sale of Goods Act 1979, Consumer Credit Act 1974, Unfair Contract Terms Act 1977, Unfair Terms in Consumer Contract Regulations 1999, Unfair Contract Terms Bill and a whole host of EU regulations and directives which have been incorporated into UK law.

What does the Sale of Goods Act 1979 require ?

The Sale of Goods Acts 1979 imposes a duty on suppliers to provide goods that are:

A) as described – the item is in line with any descriptions given in sales literature or verbally by the vendor.

B) of satisfactory quality – depends on the nature of the goods; the standards of satisfactory quality will obviously vary according to their purported condition I.e new vs. second-hand.

C) fit for purpose – fit for the goods general daily purposes and any special purposes given to the item through descriptions.

Can statutory laws be opted out of ?

Generally speaking, no.  Where your terms and conditions contradict what is said in consumer laws, for example, the statutory standards will be ultimately implied into your terms by the courts or the Office of Fair Trading should a dispute arise.  As investigations by the OFT and/or court cases can be damaging to your reputation and financially costly, it is absolutely vital you comply with relevant statutory laws in most instances.

Can I retain ownership of goods after they have been handed over to the consumer ?

Yes, contract law principles allow you to ‘retain’ the title (ownership) of goods.  In many instances, the supplier will choose to retain ownership up until payment for the goods is received.  In absence of terms retaining title, ownership ordinarily passes at the point of sale or when the goods are handed over.

How can I rely on the terms and conditions I have drafted ?

In order to be able to rely on your terms and conditions if a legal dispute arises, you must make them available to customer prior to the sale, which generally speaking, means at the point of sale.

What do the E-commerce Regulations 2002 require ?

As the regulations originate from the European Union, their requirements are quite complicated.  However, one general principle of EU law is the ‘country of origin’ principle.  This principle applies fully in the regulations and requires that the business is compliant with local consumer laws in every EU member state the goods are made available.  So goods sold in France, despite originating from the UK, will have to comply with French consumer laws and so on.

Here is the main terms and conditions page.