Sale of Goods

Stormcatcher Law is considered as exceptional in the depth of knowledge and expertise in sale of goods disputes regularly instructed in cases involving the sale and purchase of misdescribed and defective goods, and issues of substandard quality and fitness for purpose, rejection and of damages.

Cases have included:

• commercial vehicles
• tractors
• plant and machinery
• superyachts
• high-value passenger cars and supercars

The terms of the Sale of Goods Act 1979 are implied into contracts intended to regulate the quality of all manner of goods supplied in non-consumer cases usually, but not exclusively via business-to-business agreements. Our consumer rights lawyers advise on all aspects of consumer law and sales of goods rights. If you believe you have a case or would like some advice, contact us today.

Quality and fitness for purpose

The starting point in regard to quality is that the buyer buys the goods or vehicle sold as seen without any warranty implied or given (caveat emptor) except for any express terms or conditions and s14 Sale of goods act (Implied terms about quality or fitness).

Unless in commercial contracts the buyer is warned or knows the goods or vehicle to be unsafe or unroadworthy it will understandably be an important factor that the good is safe in determining quality and fitness for purpose.

This dovetails in with the exception of defects that are specifically drawn to the buyer's attention before purchase and/or any which should have been revealed through reasonable examination.

Importantly unlike the consumer rights act, there is no timeframe quoted in the legislation in which the goodwill be considered unsatisfactory if a fault with it presents itself.

Description

Description is referred to in two sections of the Act both in terms of the content of the advertisement, for example, things said and done by the seller in describing the goods including the price. Collectively these can be indicative of the customer expectations regarding quality and suitability.

Implied terms about title

There are an increasing number of cases of the equipment, plant, machinery and vehicles sold to an innocent buyer unaware of them being stolen, cloned or subject to an outstanding finance agreement.

This is understandably illegal as well as a fundamental breach s12 sale of goods act which requires that the seller has the right to sell the good, equipment or vehicle and that it is free, and will remain free until the time when the property is to pass, from any finance, loan or encumbrance not disclosed or known to the buyer before the contract is made.

Limitation of liability

On the one hand, limiting liability in the event of a breach of contract seems eminently sensible especially in cases where the potential risk outweighs the cost of the goods or the profit in it. On the other hand, it can be used to try to restrict the types of claim or heads of damages for example to exclude loss of profits for example. Limitation of liability clauses will need to have been properly incorporated and likely be the subject of examination in the context of unfair contract term act.

Non-reliance clause

Non-reliance clauses are not just used in sale of goods contracts and vehicle lease agreements such as contract hire but are widespread in commercial dealings and standard-form contracts. They intend to limit the contract terms and conditions to those written in the agreement, and the contracting party has not relied upon any pre-contractual representations, statements, and/or assurances in entering into a contract.

This can lead to a feeling that a salesperson or seller can say anything to the buyer to persuade them to buy the goods with impunity, but they’d be wrong. These clauses have proven to be ineffective against claims for misleading or deceptive conduct.

Exclusion clauses

Exclusion of liability clauses are similarly commonplace and in particular in the area of business lease vehicle agreements where the finance company or bank will exclude liability under sale of goods act for fitness for purpose and satisfactory quality.

However, these clauses will be subjected to scrutiny by the law to establish whether they are clear and unambiguous, properly incorporated and satisfy the test for reasonableness of the unfair contract terms act. The bar is even higher in the case of consumer contracts.