Sales of Goods Act B2B

[maticmedia]

I'll try and keep this short:

Sell Estate Agent for sale boards to client's specifications
Client complains they are splitting after 28 days.
Offer to repair on sites.
Raining nearly all month only manage to fix 20/100 on sites
Client complains and rejects our offer to repair and offers to pay £1000 from £2500 total bill. Rejects under the sale of goods act.
We have 2 signed documents with our terms that goods must be returned within 14 days to report a fault.
He has repaired the goods, not paid and is using them.

Sale Date: 01/06/2010

Questions:

1. The SoGA states that if the B2B transaction T&C's have been signed then the client waives their rights to the SoGA - is this correct?
2. Goods cannot be repaired by the client under the SoGA?
3. Do you think I would win by going to small claims court?

Please help this is driving me mad.

I have subsequently discovered that the client has done this to another supplier and they caved in.

Thanks in advance.

Richard

 

[Paul Kelly ICHYB]

SoGA only applies to consumers, not B2B, however, there is a duty of care!

If you have supplied sub-standard products, they do have a right to repair/replace - what does it say n your contract about this?

 

[kulture]

It is the supply of goods and services act of 1982 that applies. It DOES apply to B2B sales, but does not give the business buyer as much protection as a consumer.

The act states that

Where, under such a contract, the transferor transfers the property in goods in the course of a business, there is an implied condition that the goods supplied under the contract are of satisfactory quality.(2A)For the purposes of this section and section 5 below, goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price (if relevant) and all the other relevant circumstances.

I would reasonably expect estate agent boards to last more than 28 days.

I do not believe that you can override the LAW with your terms and conditions.

I think the estate agent is being generous in offering you £1,000.

 

[termsandconditions]

From the UK Government (http://www.berr.gov.uk/files/file25486.pdf):

"Notices [i.e. clauses in terms and conditions] CAN be used to exclude or restrict
statutory rights in relation to all goods when buyers are other than consumers (business buyers, companies) – although any such exclusion or restriction must be reasonable."

Based on this and the Sale of Goods Act 1979 itself, I believe that Kulture's 'implied condition' can be overridden by an exclusion clause for business buyers within contract terms and conditions. So if the OP's contract with the estate agent includes such an exclusion then, in theory, the Sale of Goods Act doesn't apply.

BUT whilst a business can describe their rights in their terms and conditions, it's up to the courts to uphold those rights. And the OP's business reputation may not be enhanced by enforcement of such an exclusion clause in all circumstances.

Keep us (or me at least) posted on developments especially if the matter goes to court.

Best Regards

 

[maticmedia]

Thanks for all your responses.

The issue I have is that the client has done this before by specifying materials that will fail even after we tried to advise (verbally). He also did this with someone else. We negotiated the deal with freebies thrown in. He knew for a whole month that the boards were failing and continued to put them out on display. He would not return them to allow us to repair and expected us to visit 100 different locations to fix on site, which we started but owing to weather conditions he told us we were taking too long.

He has subsequently repaired the boards on site using a cable tie!

Our signed terms are simple return within 14 working days and we'll repair or replace. We were notified over 28 days later. As a duty of care we made efforts to fix on site without a timescale... Impossible it was raining almost everyday last august!

Subsequently, I see my products everywhere fit for purpose (okay some repaired) and unpaid.

Reported this to trading standards yesterday and awaiting their feedback.

 

[Paul Kelly ICHYB]

Richard,

as you have prepared something bespoke i.e. to their specification, it does change things a little.

As your advise was verbal, it is a harder to prove you gave it, however, if you have their specification in writing, you are on much stronger ground, as you have supplied what they asked for.

Are you a member of the FSB? If you are, call their legal helpline.