Implied Terms under the Consumer Rights Act 2015

When people buy goods, digital content or services, the written contract is not the whole story. The law can automatically add important promises into the agreement, even if the parties have not written them down. These are called implied terms.

For contracts between traders and consumers, the Consumer Rights Act 2015 is a key source of those protections. It sets minimum legal standards for what must be supplied and how services must be performed. In practice, this means a business cannot usually avoid responsibility simply by staying silent, using broad disclaimers or saying that refunds are unavailable.

What is an implied term?

An implied term is a contractual obligation that applies even though it is not expressly stated in the contract. The parties do not need to negotiate it or write it into the agreement for it to have legal effect. In the consumer context, the Consumer Rights Act 2015 automatically incorporates certain rights into qualifying contracts.

For example, if a customer buys a kettle from a retailer, the contract does not have to say “the kettle must be of satisfactory quality” for that promise to exist. The law implies that term automatically.

When does the Consumer Rights Act 2015 apply?

The Act generally applies where a trader is acting for purposes relating to their trade, business, craft or profession, and the other party is a consumer acting wholly or mainly outside their own trade, business, craft or profession.

In broad terms, that means the Act is designed for business-to-consumer contracts. It does not generally govern a private sale between two individuals, and it does not usually apply to a contract made purely between businesses.

This distinction matters. A consumer buying a laptop from a retailer will usually have the benefit of the Act. A company buying office equipment for commercial use, or one private individual selling a second-hand item to another, may be in a different legal position.

Implied terms for goods

Where a trader supplies goods to a consumer, the Consumer Rights Act 2015 implies several important terms into the contract.

• Goods must be of satisfactory quality.  Goods must meet the standard that a reasonable person would consider satisfactory, taking account of matters such as the description of the goods, the price and all other relevant circumstances. A practical example is a new washing machine that stops working after two weeks through no fault of the customer. Even if the written terms are brief, the consumer may argue that the machine was not of satisfactory quality.
• Goods must be fit for a particular purpose.  If the consumer makes a particular purpose known to the trader before the contract is concluded, the goods must be reasonably fit for that purpose. The purpose may be stated directly or may be obvious from the circumstances.  For instance, if a customer tells a shop they need paint suitable for a bathroom because of moisture and steam, and the trader recommends a product that is not suitable for that environment, the consumer may have a claim that the goods were not fit for the stated purpose.
• Goods must match their description. Goods must correspond with their description. This can be important where the customer relies on wording in a product listing, advertisement or pre-contract conversation.  A straightforward example would be a sofa advertised as genuine leather which turns out to be synthetic material. If the description formed part of the basis of the purchase, the consumer may say the goods do not conform to the contract.

Implied terms for services

For services, the key legal focus is often not on whether a perfect result was achieved, but on how the service was carried out.

• Reasonable care and skill.  Every consumer service contract includes a term requiring the trader to perform the service with reasonable care and skill. This is an important baseline standard. It does not necessarily guarantee a particular outcome in every case, but it does require the work to be carried out competently.  For example, if a consumer hires a decorator and the paintwork is patchy because the surfaces were not prepared properly, the issue may be whether the decorator failed to exercise reasonable care and skill.
• Reasonable price.  If the price is not agreed, and there is no agreed method for calculating it, the consumer is only required to pay a reasonable price.  This can matter where work is carried out without a clear written quotation. If a trader later invoices a figure that is far higher than what would reasonably be expected, the question may arise whether the amount demanded is a reasonable price.
• Reasonable time.  If the contract does not fix a date or timeframe for performance, the service must be completed within a reasonable time.  For example, if a trader agrees to repair a domestic appliance but leaves the consumer waiting for an excessive period without proper justification, there may be an argument that the service was not performed within a reasonable time.

Remedies for goods

• Short-term right to reject: a consumer will ordinarily have 30 days to reject goods that do not conform to the contract and obtain a refund.
•  Repair or replacement: the consumer may require the trader to repair or replace the goods. This should be done within a reasonable time, without significant inconvenience to the consumer, and at the trader’s cost.
• Price reduction or final right to reject: if repair or replacement is impossible or unsuccessful, the consumer may be entitled to an appropriate price reduction or the final right to reject the goods.

There is also an important evidential point. Where a defect becomes apparent within six months of delivery, it will generally be presumed to have existed at delivery unless the trader proves otherwise, or unless that presumption does not fit the nature of the goods or the defect.

Why legal advice may be helpful

Although the core principles of the Consumer Rights Act 2015 are clear, disputes often arise over how those principles apply to the facts. Was a fault present at delivery? Did the consumer make a particular purpose known? Was a disclaimer merely badly drafted, or potentially unfair and unenforceable? Has a service simply produced a disappointing result, or was it actually carried out without reasonable care and skill?

For consumers, early legal advice can help identify the strongest remedy and the best way to present the complaint. For businesses, advice can help when drafting customer terms, handling complaints, assessing litigation risk and training staff to avoid practices that may breach consumer law.

Conclusion

The Consumer Rights Act 2015 places important implied terms into contracts between traders and consumers. Goods must generally be of satisfactory quality, fit for purpose, as described and supplied by someone with the right to sell them.

Services must be carried out with reasonable care and skill, and may also be subject to implied terms as to reasonable price and reasonable time. These rights apply whether or not they appear in the written contract, and businesses cannot usually contract out of them.

If you are dealing with a consumer dispute or reviewing your business terms and conditions, obtaining legal advice can help you understand your position and reduce the risk of a dispute becoming more costly.