On a date yet to be determined, but probably within the next few
months, the Supply of Goods and Services (Jersey) Law 2009 (the
"Law") will come into force. It is described by the
Minister for Economic Development as "probably the most
significant advancement in providing clarity of consumer
contractual rights in Jersey's history". However,
although it provides extra protections for consumers, the Law will
apply not just to consumer contracts, but to all contracts for the
sale of goods or the supply of services, including business to
business contracts, entered into after the Law comes into
The Law deals primarily with the sale of goods, setting out
among other things certain automatically implied warranties as to
satisfactory quality, title, description, and disclosure of
defects, as well as certain additional protections for
However, there are also provisions dealing with the supply of
services, which will be of greater relevance to banks, trust
companies, and other providers of financial services.
In particular, the Law provides that certain warranties will
automatically apply in contracts for the supply of services entered
into after the Law comes into force, unless they are excluded or
varied by the parties to the contract. Those warranties are:
That the supplier will carry out the service with reasonable
care and skill;
Where the time for the service is not fixed pursuant to the
contract or the course of dealing between the parties, the supplier
will carry out the service within a reasonable time;
Where the price for the service is not fixed pursuant to the
contract or the course of dealing between the parties, the party
contracting with the supplier shall be bound to pay a reasonable
Prior to the Law coming into force, and depending on the
circumstances, such terms would often be implied as a result of the
operation of the customary law of Jersey. However, these warranties
are now statutory and to the extent that they are not excluded or
varied, they will automatically apply. These warranties can only be
excluded or varied as follows:
By express agreement between the parties to the contract. An
express term will only negative a warranty under the Law if it is
inconsistent with it;
By the "course of dealing" between the parties.
"Course of dealing" is not defined within the Law.
However, we would expect it to be interpreted as referring to a
practice which the parties to a contract have consistently adopted
on former and similar occasions; or
By such "usage" as binds both parties to the
contract. "Usage" is not defined in the Law. However, we
would expect "usage" to be interpreted as referring to a
particular course of dealing or line of conduct which is so
generally known in a particular market or trade that unless
expressly or impliedly excluded, it must be considered as forming
part of the contract.
Businesses which are concerned as to the implications of the Law
may therefore wish to review their standard contracts. Ogier would
be happy to assist with this.
Suppliers of goods and services should also be aware that the
Law empowers the States to introduce Regulations in the future
Prevent or restrict the exclusion or restriction of civil
Deem certain contractual terms to be unfair, and exclude or
restrict the effect of such terms;
Limit the ability of parties to exclude the provisions of the
Law by agreement;
Specify further terms to be automatically included in
It will therefore be important to continue to monitor
developments in relation to this Law.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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