§ Mr. Hannam
asked the Minister for Trade when the Government will refer the law on services to the Law Commission.
§ Dr. Vaughan
My right hon. Friend the Member for Gloucester (Mrs. Oppenheim) announced on 22 January that the Lord Chancellor had agreed to refer the question of services to the Law Commission. He has now asked itto consider in the light of part II of the Supply of Goods and Services Act 1982;
and to make recommendations.
- (a) what reforms, if any, should be made to the terms to be implied by law in a contract for the supply of a service;
- (b) whether, as against a consumer, the exclusion or restriction of the supplier's liability for breach of any of such implied terms should be prohibited;
- (c) the consequences of breach by a supplier of any such terms;
This reference will enable the Law Commission to consider not only what terms—other than those set out in part II of the Act—should be implied in contracts for the supply of a service but what remedies should be available to the recipient of the service if the supplier breaches one or more of the implied terms.
The Law Commission will be concerned with codification and amendment of the existing common law in England and Wales in relation to contracts for the supply of a service. It would not be appropriate for it to investigate in detail the ways in which individual service industries operate. The Government hope, however, that it will—as in the past—take account of any legal issues which its proposals would create for particular trades, professions and service industries.
There will be no comparable reference to the Scottish Law Commission since the subject falls within the scope of the law of obligations whose review is already within its programme.