So concluded a recent case where our client (the ‘Seller’) sold a 17-year-old, 150,000+ mile Land Rover Discovery for just £4,000, roughly 10% of its original value, to a business (the ‘Buyer’) intending to convert it into a recovery vehicle. The Buyer then sought almost £9,000 from our client to make this heavily used, part-worn vehicle substantially new for its intended purpose. The claim was strongly resisted and ultimately dismissed by the Court.
There were no written terms. The sale was completed informally following a conversation and sealed with a handshake. As such, an element of caveat emptor (buyer beware) applied.
Unless otherwise agreed, it was entirely reasonable to expect the Buyer to have satisfied itself as to the condition of the vehicle before parting with any money.
A report from Scotia Engineering was of limited help to the Court. However, in response to a question posed by the Seller via our sister Community Interest Company, the engineer confirmed that the vehicle’s condition was not unusual for its age, mileage and value. After all, this was an old vehicle, and it had to be judged in that context.
The Buyer claimed for repair costs and loss of business damages, which the Judge roundly rejected. The Court held that the Buyer should have expected some issues with a vehicle of this nature, taken time to inspect it properly, and satisfied itself as to its condition before committing. Relying on a few limited assurances from the Seller simply wasn’t good enough. On the facts, the vehicle was essentially sold as seen. Claim dismissed.
That said, it is unlikely this would have been the outcome had the Buyer been a consumer. But in this business-to-business setting, context and optics were everything.
If you’ve had a similar issue, whether selling or buying, why not call our legal team at Lawgistics? Our casework team is here to help you navigate tricky disputes.
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