Feldarol Foundry Plc v Hermes Leasing (London) Ltd & Anor

Feldarol Foundry Plc v Hermes Leasing (London) Ltd & Anor

The respondent company dealt as a consumer under the Unfair Contract Terms Act 1977, so the exclusion clause was ineffective. The car was not of satisfactory quality, entitling the respondent to reject it. The respondent's conduct did not amount to affirmation of the contract.

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 County Court
Outcome
Appeal dismissed
Legal Topics
Hire Purchase Agreements, Exclusion Clauses, Consumer Definition, Implied Terms, Rejection of Goods
Contract Law Consumer Protection Hire Purchase Agreements Exclusion Clauses Consumer Definition Implied Terms Rejection of Goods

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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 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 dealt as a consumer under the Unfair Contract Terms Act 1977, so the exclusion clause was ineffective. The car was not of satisfactory quality, entitling the respondent to reject it. The respondent's conduct did not amount to affirmation of the contract.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Costs assessed as claimed without VAT