UK Law and Practice Contributed by: Simon Antrobus KC, Mike Atkins, Elizabeth Boon, Richard Sage, David Myhill and Alex Antelme KC, Crown Office Chambers
Claims in Contract Product liability in contract law refers to the liability of a seller or manufacturer for damages caused by a defective product, based on the terms of the contract of sale or supply of the goods. This liability can arise from breach of an express or implied term of the contract. The law implies certain terms into contracts for the sale or supply of goods, as follows. • The Consumer Rights Act 2015 (CRA 2015) sets out implied terms for consumer con - tracts, including that goods must be of sat - isfactory quality, goods must be reasonably fit for purpose, and goods must correspond with their description. The CRA 2015 provides consumers with certain rights to reject defec - tive goods for a full refund (within 30 days of purchase), or to request a repair or a replace - ment. • The Sale of Goods Act 1979 (SGA 1979) also deals with implied terms and remedies for defective goods, particularly in contracts where goods are sold in the course of a busi - ness. The SGA 1979 likewise implies terms in respect of goods being of satisfactory quality, reasonably fit for purpose, and matching any description. • The Supply of Goods and Services Act 1982 applies to the transfer of goods. Unlike negligence claims, a breach of contract claim does not require the claimant to prove that the seller was at fault, merely that there was a breach of contract. However, sellers will often seek to limit or exclude their contractual liabil - ity by way of standard terms and conditions. A manufacturer or seller cannot exclude liability for personal injury or death.
mon law negligence in respect of a product. In order to bring a claim in negligence, a claimant must prove the following key elements: • the manufacturer or seller owed the claimant a duty of care in respect of the production or sale of the product; • the manufacturer or seller breached the duty of care – ie, failed to meet the required stand - ard of care; • the breach of duty caused the claimant’s loss or damage; and • the claimant suffered loss and damage that was foreseeable. The manufacturer’s or supplier’s negligence may be: • a failure to take care during the manufactur - ing process, resulting in a particular product being defective; • a failure to take care during the design of the product, including a failure to carry out suf - ficiently careful research and/or testing; • a failure to provide an effective warning of a danger; or • a failure to recall a product, or to issue appro - priate warnings (for example, to cease use) if a danger becomes apparent after the product has been put into circulation. As with any tortious liability, the claimant must establish fault on the part of the defendant. This may be difficult and expensive for the claimant to prove (and can often involve expert evidence), and therefore claims in negligence are gener - ally considered to be more difficult to bring than claims under the CPA.
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