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In: Accounting

The Supply of Goods and services Act 1982 Section 12 defines the contract for the supply...

The Supply of Goods and services Act 1982 Section 12 defines the contract for the supply of a service as a contract under which the supplier agrees to carry out a service. Outline the three implied terms in the contract of supply of services.

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Expert Solution

Implied term about care and skill.

In a relevant contract for the supply of a service where the supplier is acting in the course of a business, there is an implied term that the supplier will carry out the service with reasonable care and skill.

Implied term about time for performance.

(1)Where, under a relevant  contract for the supply of a service by a supplier acting in the course of a business, the time for the service to be carried out is not fixed by the contract, left to be fixed in a manner agreed by the contract or determined by the course of dealing between the parties, there is an implied term that the supplier will carry out the service within a reasonable time.

(2)What is a reasonable time is a question of fact.

Implied term about consideration.

(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.

(2)What is a reasonable charge is a question of fact.


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