If you have purchased a ‘faulty’ horse it is important to act without delay to avoid losing or reducing the available remedies.
You can avoid having to allow the seller an opportunity to repair or replace the horse if you exercise the short-term right to reject (if it would be possible to do so). Also, if the horse does not meet the contract terms at any point within the first six months, it will be treated as though it did not meet those terms when it was delivered. This applies when exercising the rights to repair, replacement, or final rejection. This is a useful presumption which shifts the burden to the seller to prove the horse was not in fact faulty at the time of delivery.
Background
The Consumer Rights Act 2015 (the “Act) outlines the rights available to purchasers and applies to all horse purchases between a trader and consumer entered into on or after 1 October 2015.
Consumer Position Under the Act
Under the Act consumers are afforded certain rights if the horse purchased did not conform to the contract at the time of delivery. A horse will be deemed not to conform to the contract if any of the following terms implied by the Act into all consumer contracts are breached:
- the horse is of satisfactory quality
- the horse is reasonably fit for any particular purpose the buyer makes known to the seller they are purchasing it for
- the horse will be as described
If any of these implied terms are breached and the horse did not conform to the contract at the time of delivery the Act provides the buyer with certain rights in respect of what are essentially faulty goods.
What happens when faulty goods have been purchased
Under the Act, the following tiered procedure will be followed where faulty goods have been purchased:
- The buyer has 30 days from delivery and transfer of ownership to reject the horse (short-term right to reject)
- After this, they must give the seller at least one chance to repair or replace it before using the final right to reject.
- If repair or replacement fails or is not possible, the buyer can reject the horse.
To reject, the buyer must clearly inform the seller (oral notice is valid, but written is strongly recommended). Once rejected, the seller must refund the buyer, who may also claim costs such as keeping and caring for the horse.
It is important to note that the Act provides rights in respect of goods that are faulty. It does not entitle a purchaser to reject a horse where they have simply changed their mind.
Business to Business Horse Purchases
The Act applies to consumer contracts only. If both the buyer and seller are acting in the course of a business the Sale of Goods Act 1979 continues to apply for horse purchases both before and after 1 October 2015.
Rights Against a Private Seller
The Act does not apply to private sellers (those acting outside their business or profession). In such cases, the Sale of Goods Act 1979 does not imply that the horse is of satisfactory quality or fit for purpose.
The latin maxim “Caveat Emptor” (“Let the Buyer Beware”) will apply.
Instead, the purchaser is likely to have to bring a claim for misrepresentation.
Importance of Taking Legal Advice
If you have sold or purchased a horse and a dispute has arisen, then contact us. As specialist equine solicitors, we are well placed to resolve your dispute as swiftly and cost-effectively as possible. We have also produced a useful flow diagram to help you establish whether you might have a claim.
Note: Every purchase of a horse is different and has its own unique factors. Do not rely on this article as a substitution for taking legal advice.
