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#contract #law #terms
The amendment does not affect the absolute right of the consumer to reject goods for any breach of a term implied by the SGA 1979 ss 13–15 (now provided for by the Consumer Rights Act 2015). The amendment does, however, create a statutory exception to the absolute right of rejection for breach of the implied terms where the goods are supplied to a buyer who is not dealing as a consumer. As a result, where a buyer would previously have had the right to terminate the contract and reject the goods, that right has now been lost where the seller can show that the breach is so slight that it would be unreasonable for the buyer to reject. The effect of the modification in these circumstances is that breach of these implied terms is not to be treated automatically as a breach of condition but may, at the court's discretion, be treated as a breach of warranty and, accordingly, the only remedy available will be to claim damages. The amendment gives effect to the view that damages will normally suffice for non-consumers (although not for consumers) and, further, that the right to terminate for the slightest breach could be unfair to the seller whose loss resulting from rejection might far exceed the cost of remedying the defect.
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