Q&As

In a contract for the sale of goods (business to business), is the buyer entitled to reject the goods if they do not conform to specification in circumstances where the buyer has, subsequent to delivery by the seller, shipped the goods onwards to a third country? Is the supplier liable to refund the price of the goods before they receive the returned goods?

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Published on: 01 December 2021
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Where the buyer has shipped the Goods onwards, English law will consider whether the buyer acted as having accepted the goods. Section 35(6) of the Sale of goods Act 1979 (SGA 1979) provides that the buyer is not deemed to have accepted the goods ‘merely because the goods are delivered to another under a sub-sale or other disposition’.

See also Commentary: Resales: Halsbury’s Laws of England [313].

Upon taking Delivery, the buyer should take every opportunity where possible to examine the goods. SGA 1979, s 34 provides that the seller is bound on request to allow the buyer a reasonable opportunity of examining the goods.

In such circumstances, the buyer should act promptly and keep the seller notified

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Jurisdiction(s):
United Kingdom
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Key definition:
Sale of goods definition
What does Sale of goods mean?

A sale is the transfer of ownership by mutual asset of a thing from one person (the seller) to another (the buyer) for a money price.

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