Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Contract law B2B - warranties, set-off

Contract law B2B - warranties, set-off

Postby eee91 » Thu Oct 01, 2015 12:14 pm

I would like to ask some questions about the contract law in the UK. I don't know the legal system of the UK (common law) so I had a lot of problems to find an answer to my questions and that is why I'd be really grateful for your help.
Short about the case. There was a contract between two businessmen: A (a seller) was obligated to deliver goods and B (a buyer) was obligated to pay the price. B paid only half price so A sued him for payment. B contends that he didn't pay the whole price because the goods were damaged.
My questions are:
In which legal act can I find informations about warranties in the sale of goods (between businessmens!)?
What kind of goods does this warranty concern?
How much time has B to inform A about damages? and to sue A for warranty? (for example: one month since he detected a damage or something like that?)
Is there a possibility that B would plead the set-off in that case? I red that such a defense doesn't apply to cases in which damages were claimed but I couldn't find any legal basis.
Which characteristic of a claim are requaired for the set-off?
In which legal act can I find some informations about set-off?

Thank you very much for your help.
eee91
 
Posts: 2
Joined: Thu Oct 01, 2015 12:01 pm

Re: Contract law B2B - warranties, set-off

Postby atticus » Thu Oct 01, 2015 12:26 pm

Welcome. I hope that you find assistance here.

Are you a student? If so, may I ask where, and what you are studying?

Answers to your questions:

1. Sale of Goods Act 1979

2. I am not aware of any time limit, as such, but commercial contracts often contain terms requiring the buyer to notify defects within a specified time after delivery.

3-5. Set-off is where there is a cross-claim. In the circumstances you describe, B has a defence, i.e. a reason for non payment, and not a cross-claim. B's defence is based on A's non-performance/breach of contract.
User avatar
atticus
 
Posts: 19537
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Contract law B2B - warranties, set-off

Postby eee91 » Thu Oct 01, 2015 3:29 pm

Thank you for your quick answer. I am not a student, I am a businesswoman from Poland - this is why I am looking for some help here because I know only Polish law.
The contract didn't contain any terms about notification of defects within a specified time after delivery. I also couldn't find any time limit in the Sale of Goods Act 1979 so maybe someone else knows something about it? Or maybe someone knows for sure that there is no time limit so it would mean that you can notify defects until the limitation period? Can I ask what is the limitation period in this case?

If it's about the set-off - I don't understand why there is no cross-claim here because:
- A has a claim against B for non-performance the contract (non-payment)
- B has a claim against A based on remedy for breach of warranty (in the beginning he asked A to repair damages, but A didn't want to do this because he found that claim unjustifided, but B decided that if A didn't want to repair then he rejected the goods - so I understand that this way he has a claim for a payment )
So if A has a claim against B and B against A is there not a cross-claim?

I can only say that I would prefer if B wouldn't have a claim against A and couldn't do a set-off.

I would really appreciate if you could help me to understand this. Thank you.

+ how would you comment the sentence I wrote earlier: 'Such a defense [set-off] could be pleaded only in respect of mutual debts of a definite character, and did not apply to cases in which damages were claimed, nor to equitable claims or demands'.
eee91
 
Posts: 2
Joined: Thu Oct 01, 2015 12:01 pm

Re: Contract law B2B - warranties, set-off

Postby atticus » Thu Oct 01, 2015 3:53 pm

You have added new information that was not in your first post.

However, B cannot both reject goods and insist that A repair them. If A repairs the goods, he is entitled to be paid for the goods. If B rejects the goods, then he has a defence to a claim for payment of the purchase price but he does not have a cross-claim under the warranty. B has to decide which it is.
User avatar
atticus
 
Posts: 19537
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Contract law B2B - warranties, set-off

Postby dls » Fri Oct 02, 2015 10:11 am

The limitation period is in general six years.

You may also try
http://swarb.co.uk/?s=Sale+of+Goods+Act+1979
and the posts with contract law for case law statutes and links.
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 12135
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire


Return to Contract and Consumer Law

Who is online

Users browsing this forum: No registered users and 1 guest

cron