Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32G

Terms implied in contracts as to right to supply

32G. Terms implied in contracts as to right to supply



(1) Subject to section 32GA, in a contract of supply of goods there is-

   (a)  an implied condition that-

   (i)  in the case of a contract, not being an agreement to supply, the
        supplier has a right to supply the goods; and

   (ii) in the case of an agreement to supply, the supplier will have a right
        to supply the goods at the time when the property is to pass; and

   (b)  an implied condition that, at the time the property in the goods is to
        pass, the goods will be free from any charge or encumbrance other than
        a charge or encumbrance-

   (i)  of which the purchaser is aware when the supply is made; and

   (ii) subject to which the purchaser has agreed to accept the goods; and

   (c)  an implied warranty that the purchaser will enjoy quiet possession of
        the goods, except as far as it may be disturbed by a person entitled
        to the benefit of a charge or encumbrance-

   (i)  of which the purchaser is aware when the supply is made; and

   (ii) subject to which the purchaser has agreed to accept the goods.

(2) This section does not apply to a contract of supply of goods by way of
lease.