Industry NewsMILS Guidance

MILS weekly advice: Mixed Contracts; Supplying and Fitting Parts

There has always been some debate regarding the rules that govern contracts that deal with both the supply of goods and the supply of services, i.e. the supply and fitting of parts to a vehicle. If a member supplied and fitted goods to a vehicle is that a contract for goods, a contract for services or both.

Section 3 of the Consumer Rights Act makes it clear; it is both. The Act goes on to specifically define 2 particular types of mixed contract: the supply and installation of goods, and the supply and installation of digital content.

Installation as part of conformity of the goods with the contract (Section 15)

“ (1)Goods do not conform to a contract to supply goods if—

(a)installation of the goods forms part of the contract,

(b)the goods are installed by the trader or under the trader’s responsibility, and

(c)the goods are installed incorrectly.”

As such a failure to install any goods correctly will result in the goods themselves also being in breach of the contract. Where this is important is when it comes to the remedies available to consumers.

“(4)If the goods do not conform to the contract under section 15 …the provisions about them and when they are available are—

(a)the right to repair or replacement (section 23); and

(b)the right to a price reduction or the final right to reject (sections 20 and 24).”

In Conclusion

It is important to note that the remedy available to consumers for a breach of a mixed contract is different from that of a contract to supply of goods alone. In the event of a breach consumers are required to first provide an opportunity to rectify the service insofar as it is necessary to put the matter right. Consumers are not entitled to a short term right of rejection even if any fault occurs within the first 30 days.

Motor Industry Legal Services

Motor Industry Legal Services (MILS Solicitors) provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.