Does Non-compliance Involve a Breach of Implied Terms?
We may conclude (1) that many of the items likely to be affected by the Y2K problem are ‘goods’, and that whilst the status of contracts for the supply of software remains unclear, (2) it is at least arguable that some contracts for the supply of proprietary software are contracts for the sale of goods, and (3) that even if software is not analysed as goods, the contracts under which they are supplied may contain implied terms equivalent to (some of) those implied by statute into contracts of sale. The consequence is that the supplier of the software or goods in each case will be subject to liability for breach of the implied terms. We must therefore now consider the application of those terms to software, or any other item, affected by a Y2K related problem. As noted earlier, all contracts for the supply of goods include implied terms that the goods supplied should (a) where sold by description, correspond with that description (Sale of Goods Act 1979 s.13); (b) be of satisfactory qua
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