Feldarol Foundry Plc v Hermes Leasing (London) Ltd & Anor [2004] EWCA Civ 747 (11 May 2004)

Feldarol Foundry Plc v Hermes Leasing (London) Ltd & Anor [2004] EWCA Civ 747 (11 May 2004)

The respondent company was dealing as a consumer under the Unfair Contract Terms Act 1977, following the binding authority of R & B Customs Brokers v United Dominion Trust Ltd. The exclusion clause could not be relied upon. The car was not of satisfactory quality due to serious defects, entitling the respondent to reject it. The respondent did not affirm the contract and validly rejected the car.

Citation
[2004] EWCA Civ 747
Parties
Claimant/respondent: Feldarol Foundry plc; First Defendant/appellant: Hermes Leasing (London) Ltd; Second Defendant: Amari Sant Agata Classics
Jurisdiction
England and Wales
Judgment Date
11 May 2004
Procedural Posture
Civil Appeal / Appeal From Bournemouth County Court
Outcome
Appeal dismissed
Legal Topics
Hire Purchase Agreements, Exclusion Clauses, Implied Terms, Consumer Status of Companies, Rejection of Goods, Affirmation of Contract
Contract Law Consumer Protection Hire Purchase Agreements Exclusion Clauses Implied Terms Consumer Status of Companies Rejection of Goods Affirmation of Contract

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Parties

Feldarol Foundry plc

Claimant/respondent

Hermes Leasing (London) Ltd

First Defendant/appellant

Amari Sant Agata Classics

Second Defendant

Procedural Posture

Civil Appeal / Appeal From Bournemouth County Court

Legal Issues

  1. 1 Whether a company can deal as a consumer under the Unfair Contract Terms Act 1977
  2. 2 Whether the exclusion clause in the hire-purchase agreement was effective
  3. 3 Whether the car was of satisfactory quality under the Sale and Supply of Goods (Implied Terms) Act 1973

Ratio Decidendi

The respondent company was dealing as a consumer under the Unfair Contract Terms Act 1977, following the binding authority of R & B Customs Brokers v United Dominion Trust Ltd. The exclusion clause could not be relied upon. The car was not of satisfactory quality due to serious defects, entitling the respondent to reject it. The respondent did not affirm the contract and validly rejected the car.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs assessed as claimed without VAT