First Principles of Business Law

4. Enforcement of terms implied into sale contracts

4.3. Restrictions on the right to reject goods

Read the facts and the question and then choose the best answer.

A, who owns and operates a day-care centre for young children, sees advertised '20 used small wooden chairs'. He telephones the seller, B and asks if the chairs would be suitable for samll children.  B says that he thinks they would be,  A offers to buy the chairs as advertised  for $200 and B accepts this offer.  When he goes to collect them, A is disappointed to see that, althought the chairs are smaller than standard chairs, they are too big for the children who attend his centre.  He wants to reject them on grounds that they are not suitable for his expressed purpose.  Assuming there has been a breach of the term implied into this contract that the chairs would be suitable for A's purpose, is A entitled to reject the chairs?

(a) No. In the circumstances of this case, A must accept the goods but may claim damages for any loss arising from the breach.

(b) Yes. In the circumstances of this case, A is entitled to reject the goods and may also claim damages for any loss arising from the breach.