First Principles of Business Law

Performance and breach of contract

4. Establishing a breach of contract

4.5. Hidden defects

 

 

 

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

A, a hotelier, buys 4 washing machines from B, a retailer of electrical goods. The machines are delivered and installed in the hotel laundry. They work well for a week and A pays B for them in full. A short time later the machines start breaking down and a specialist tells A that their computerised components are faulty and would cost more to replace than the machines are worth. A asks B to remove the machines and return the price paid.

In these circumstances, can B successfully argue that performance of the contract has already been made and accepted and it is too late for A to reject the machines?

(a) Yes. Once the machines are accepted, installed and used, it would be too late for A to reject them.

(b) No. Because these defects could not have been discovered earlier, A can still reject the machines when the defects become apparent.

 

 

 

 

 

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