Commonwealth Numbered Acts

TRADE PRACTICES ACT 1974 No. 51, 1974 - SECT 69

69. (1) In every contract for the supply of goods by a corporation to a
consumer, other than a contract to which sub-section (3) applies, there is-

   (a)  an implied condition that, in the case of a supply by way of sale, the
        supplier has a right to sell the goods, and, in the case of an
        agreement to sell or a hire-purchase agreement, the supplier will have
        a right to sell the goods at the time when the property is to pass;

   (b)  an implied warranty that the consumer will enjoy quiet possession of
        the goods except so far as it may lawfully be disturbed by the
        supplier or by another person who is entitled to the benefit of any
        charge or encumbrance disclosed or known to the consumer before the
        contract is made; and

   (c)  in the case of a contract for the supply of goods under which the
        property is to pass or may pass to the consumer-an implied warranty
        that the goods are free, and will remain free until the time when the
        property passes, from any charge or encumbrance not disclosed or known
        to the consumer before the contract is made.

(2) A corporation is not, in relation to a contract for the supply of goods,
in breach of the implied warranty referred to in paragraph (1) (c) by reason
only of the existence of a floating charge over assets of the corporation
unless and until the charge becomes fixed and enforceable by the person to
whom the charge is given.

(3) In a contract for the supply of goods by a corporation to a consumer in
the case of which there appears from the contract or is to be inferred from
the circumstances of the contract an intention that the supplier should
transfer only such title as he or a third person may have, there is-

   (a)  an implied warranty that all charges or encumbrances known to the
        supplier and not known to the consumer have been disclosed to the
        consumer before the contract is made; and

   (b)  an implied warranty that-

        (i)    the supplier;

        (ii)   in a case where the parties to the contract intend that the
               supplier should transfer only such title as a third person may
               have-that person; and

        (iii)  anyone claiming through or under the supplier or that third
               person otherwise than under a charge or encumbrance disclosed
               or known to the consumer before the contract is made,

will not disturb the consumer's quiet possession of the goods.