Remedies of buyer (Consumer Remedies) Implied terms + sellers remedies

Question 1

When does the buyer have the right to reject the goods?

Answer 1

• If seller has breached a condition of the contract
• where the buyer doesn’t deal as a consumer
• if seller delivers wrong quantity of goods
• where a term in the contract gives buyer right to reject
• where seller commits a repudiatory breach of the contract
• where seller breaches innominate term of the contract

Question 2

What happens If seller has breached a condition of the contract?

Answer 2

Has the right to end contract, sue and claim for damages unless:

• buyer accepted goods = treated as a warranty s11(4)
• buyer didn’t deal as a consumer (ie. was a commercial buyer) and breach was very slight = treated as warranty under s15A and seller to prove this was the case s15A(3)
• buyer waived condition/ treated breach as warranty = warranty under s11(2) SGA

Question 3

What happens where where the buyer doesn’t deal as a consumer?

Answer 3

Where buyer doesn’t deal as a consumer and the breach is so slight that rejection would be unreasonable, the condition would be treated as breach of warranty - s15(A)

Question 4

What happens if seller delivers wrong quantity of goods?

Answer 4

s30- buyer may reject goods if wrong quantity delivered except for buyers who didn’t deal as consumers with a breach that is so slight that rejection is unreasonable -s30(2)(a).

Question 5

What happens where a term in the contract gives buyer right to reject?

Answer 5

Where contract of sale expressly gives buyer right to reject goods for a specific event, given that event occurs, buyer can reject goods.

Question 6

What happens where where the seller commits a repudiatory breach of the contract?

Answer 6

If seller commits repudiatory breach of contract buyer can accept the breach as bringing the contract to an END.

Question 7

What happens where a seller breaches innominate term of the contract?

Answer 7

Where the seller breaches an innominate term of the contract that deprives the buyer of the entire benefit of contract:

• the seriousness of the innominate term would be used to identify w/n breach of it is a condition or a warranty.
• if consequence of breach is serious and entire benefit deprived of for innocent party it is a condition and remedies of a condition available.
• if not so serious, then a breach of warranty (Hong kong v kawasaki 1962)