The sale of goods by traders is covered by the Sale of Goods Act 1979, which requires that the goods sold must be as described, of satisfactory quality and fit for purpose. If these criteria are not met, the buyer has the right to reject them. However, the trader might offer to replace or repair the goods.

Recently, the House of Lords heard an appeal, from the Scottish Court of Session, which required it to consider the position in which a trader delivered defective goods to the customer, who then agreed that they should be repaired. The question that arose was whether the customer could then reject the repaired goods. J & H Ritchie Ltd. had purchased a combination seed drill and harrow from Lloyd Ltd. When it was made ready for use by Ritchie, it was immediately obvious that the harrow was not working properly as it had excessive vibration.

Ritchie stopped using the harrow and contacted Lloyd, which agreed to repair it. Having collected the machine and diagnosed the problem – two missing bearings – Lloyd ordered the parts and, when these arrived, it repaired the machine and informed Ritchie that it was ready for collection. This process took some weeks. Lloyd did not tell Ritchie the nature of the problem when requested to do so, merely replying that the equipment was repaired and that the repair had made it as good as new.

Unhappy with this response, Ritchie rejected the machine. Lloyd commenced legal proceedings, arguing that Ritchie was bound by law to accept the repaired goods. Although Lord Brown was critical of Lloyd for its lack of candidness regarding the nature of the problem, in the view of the Lords, where a buyer receives goods which are defective and the defect is clear to buyer and seller, there is an implied duty on the part of the buyer to accept the goods and pay for them once the necessary repairs have been carried out.

In the words of Lord Hope, “A buyer who…allows the seller to incur the expense of repair is under an implied obligation to accept and pay for the goods once the repair has been carried out.” This judgment has clear implications for purchasers of goods who find them to be defective. If they agree to have the goods repaired, the right to reject them will normally be lost. Contact us for advice on any contractual matter.

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