SUPPLY OF GOODS (AMENDMENT) BILL

Order for Second Reading read.

The Senior Parliamentary Secretary to the Minister for Law (Assoc. Prof. Ho Peng Kee): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill is closely related to the Sale of Goods (Amendment) Bill, which we have just dealt with.

By virtue of the Application of English Law Act (Cap. 7A), Parts I and III of the United Kingdom's Supply of Goods and Services Act 1982 and Parts I and III of the United Kingdom's Unfair Contract Terms Act 1977 are applicable in Singapore. Like the United Kingdom's Sale of Goods Act 1979, these enactments are reprinted in our Revised Edition of Statutes as part of our legislation.

Sir, in the United Kingdom, changes were made to Parts I and III of the Supply of Goods and Services Act 1982 by the Sale and Supply of Goods Act 1994.

Again, both the Attorney-General and the Law Reform Committee of the Singapore Academy of Law have considered these changes and have recommended that our Supply of Goods Act be similarly amended. As such, this Bill seeks to incorporate the relevant changes in our Supply of Goods Act.

As in the case of contracts for the sale of goods, the new reformulated implied condition of "satisfactory quality" will replace the existing implied condition of merchantable quality in all contracts for the transfer of goods and contracts for the hire of goods.

Also, where there has been a breach of contract by a transferor or bailor towards a non-consumer transferee or bailee and the breach is so slight that it would be unreasonable for the transferee or bailee to reject the goods and repudiate the contract, the transferee or bailee will not be allowed to do so but he will be able to pursue any other remedy including the recovery of damages.

Finally, the Bill also incorporates in our Unfair Contract Terms Act an amendment similar to that made by the UK's Supply of Goods Act 1982 to Part I of her Unfair Contract Terms Act 1977.

This amendment provides that, in a case where the possession or ownership of goods passes under or pursuant to a contract not governed by the law of sale of goods or hire-purchase, liability for breach of the obligations arising under section 2 of the Supply of Goods Act cannot be excluded or restricted by reference to any contract terms which purport to exclude or restrict liability for breach of obligation arising by implication of law from the nature of the contract.

Sir, again, may I say that these changes are not intended to bring about any major shift in the balance of rights and obligations as between a buyer and a supplier of goods but to update and clarify the law relating to the supply of goods so as to benefit buyers and suppliers alike.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Assoc. Prof. Ho Peng Kee].

Bill considered in Committee; reported without amendment, read a Third time and passed.