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Contracts for the Supply of Goods
(HKLRC Consultation Paper)

This Consultation Paper contains proposals to reform the law governing contracts for the supply of goods and, in particular, the implied undertakings which should be imposed on suppliers of goods.

Where goods are supplied under a contract of sale, the law imposes a number of statutory undertakings on the supplier. These include, for instance, an undertaking that the goods are of good quality and fit for the buyer's particular purposes, and that the goods correspond with any description which have been provided. These statutory undertakings only apply in contracts of sale and not where goods have been supplied in some other way, such as by hire or hire purchase. In those cases, the supply of goods is governed by case law and it is unclear whether similar implied undertakings apply. The sub-committee's proposals are aimed at clarifying the law in this area, and follow an examination of the position in a number of other jurisdictions.

The Consultation Paper recommends that the law should be clarified and made more certain by setting out in new legislation suppliers' implied undertakings to customers in contracts for the supply of goods. These undertakings should be consistent with those which apply at present in contracts for the sale of goods.

The Consultation Paper also makes a number of recommendations in relation to contracts for the sale of goods.

Press Release (PDF) (MS Word)
Executive Summary (PDF) (MS Word)
Consultation Paper (PDF) (MS Word)

Important Notices