‘Sold as seen’ – what does this mean when it comes to faulty goods?
The litigation team have been instructed recently on a matter where a client bought faulty goods from auctioneers selling on behalf of liquidators of a company.
The auctioneers have relied on the defence that the faulty goods were “sold as seen” and “without warranty” – but what does this actually mean?
When goods are “sold as seen”, it generally means that the goods are sold in their existing condition and no representation is given in respect of quality. The words “without warranty” would suggest the seller is providing no warranty as to the quality or fitness for purpose of the goods. Using terms, such as these, appear to automatically blanket exclude all contractual protection available to the buyer.
The Sale of Goods Act 1979 (SOGA) provides for a number of implied terms in business to business contracts. For example, under section 14 of SOGA, it is implied that goods sold should be of satisfactory quality.
The term “sold as seen” may not constitute an exclusion of the usual implied terms under SOGA, but could act as evidence that the sale is not one by description or sample but of specifically ascertained goods. However, if there is no inspection of goods as part of a sale, the sale is likely to be considered one by description.
In respect of “without warranty”, this is more likely to be considered an exclusion of section 14 of SOGA and other implied terms.
In relation to section14 of SOGA, both terms, where used for a sale which is made in the course of business, would be subject to section 6 of the Unfair Contract Terms Act 1977 and the test of reasonableness. Absolute exclusions, such as these, are likely to be considered unreasonable.
The litigation team are able to advise on various contractual dispute matters, contact us to find out more.
*This article is provided for general information purposes only and does not constitute legal or any other professional advice.