Atari Corp (UK) Ltd v Electronics Boutique Stores (UK) [1997] EWCA Civ 2099 (15th July, 1997)

A notice of rejection under a sale or return contract is valid if it clearly communicates rejection and generically identifies the goods, enabling objective identification, without requiring simultaneous physical availability for return.

Citation: [1997] EWCA Civ 2099
Parties: Plaintiff: Atari; Defendant: Electronics
Jurisdiction: England and Wales
Procedural Posture: Civil Appeal / Appeal Judgment
Outcome: Appeal allowed
Legal Topics: Sale or Return Contracts, Notice of Rejection, Passing of Property, Certainty in Contractual Notices

Contract Law Commercial Law Sale or Return Contracts Notice of Rejection Passing of Property Certainty in Contractual Notices

Case Brief

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Parties

Atari

Plaintiff

Electronics

Defendant

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

1 Whether the letter of 19th January 1996 constituted a valid notice of rejection under a sale or return contract
2 Whether a notice of rejection must identify the goods with specificity
3 Whether availability of goods for return at the time of notice is required for validity

Ratio Decidendi

Court Disposition

Appeal allowed

Orders

Judgment for £38,246.84 with a stay of execution to the extent of £27,025.00
Declaration that the 19th January 1996 letter was a valid notice of rejection of the unsold Jaguar stock subject to sale or return