First Principles of Business Law

3. Terms implied by law into contracts for the sale of goods

3.7.1. Implied terms regarding the quality of goods

When goods are bought and sold, the parties must at least agree on what particular goods, or what type of goods, must be supplied. But very often they do not give specific attention to what attributes of quality those goods must have. If a dispute then arises over the quality of what is delivered, there will be no agreed terms to refer to.

Because this is a commonly occurring situation, state and territory sale of goods legislation puts terms into the contract laying down exactly what qualities goods are to have, depending on the particular circumstances of the case.

The examples in the following pages will help you learn:

• how to recognise the type of situations in which the various terms regulating the quality of goods will be implied into a contract of sale.
• what quality of goods is required by the different implied terms.