J & H Ritchie Ltd v. Lloyd Ltd [2005] ScotCS CSIH_3 (11 January 2005)

J & H Ritchie Ltd v. Lloyd Ltd [2005] ScotCS CSIH_3 (11 January 2005)

Where a seller, after initial delivery of defective goods, repairs and re-tenders the goods in a conforming state before the buyer exercises the right to reject, and the contract remains alive, the buyer is obliged to accept the goods and loses the right to reject; the right to reject is not absolute and may be extinguished by the seller's cure prior to rejection.

Citation
[2005] ScotCS CSIH_3
Parties
Pursuer and Appellant: J. & H. Ritchie Limited; Defender and Respondent: Lloyd Limited
Jurisdiction
Scotland
Judgment Date
11 January 2005
Procedural Posture
Appeal / Appeal From Sheriff Principal to Inner House, Court of Session
Outcome
Appeal refused
Legal Topics
Right of Rejection, Remedies for Breach of Contract, Repair and Re Tendering of Goods, Acceptance of Goods, Material Breach, Statutory Interpretation
Contract Law Commercial Law Sale of Goods Right of Rejection Remedies for Breach of Contract Repair and Re Tendering of Goods Acceptance of Goods Material Breach +1 more

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Parties

J. & H. Ritchie Limited

Pursuer and Appellant

Lloyd Limited

Defender and Respondent

Procedural Posture

Appeal / Appeal From Sheriff Principal to Inner House, Court of Session

Legal Issues

  1. 1 Whether a buyer retains the right to reject goods after agreeing to repair and after the seller re-tenders the goods in a conforming state
  2. 2 Whether the repair and re-tendering of goods by the seller extinguishes the buyer's right to reject under the Sale of Goods Act 1979

Ratio Decidendi

Where a seller, after initial delivery of defective goods, repairs and re-tenders the goods in a conforming state before the buyer exercises the right to reject, and the contract remains alive, the buyer is obliged to accept the goods and loses the right to reject; the right to reject is not absolute and may be extinguished by the seller's cure prior to rejection.

Court Disposition

Appeal refused

Orders

  • The interlocutor of the Sheriff Principal of 31 July 2003 is adhered to.
  • The appeal by J. & H. Ritchie Limited is refused.