LL4002: Law of Contract - First Assessed Coursework

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Undergraduate Programme
in Law
LL4002 –Law of Contract
FIRST ASSESSED COURSEWORK 2018-19

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Letter of Claim
To- The Manager
From- Legal Counsel
Subject- Letter of claim for refund of faulty and damaged goods
Date:
On behalf of the facts mentioned by the client, the legal counsel hereby submits a letter for
claiming refund in respect of goods purchased which have proved to be faulty. The letter
provides for all the relevant laws which are in force presently in United Kingdom and which
deals with the protection of the interest of consumers.
In United Kingdom the citizens advise for consumer protection is according to the
jurisdiction of the nation. For example, in England and Wales, the citizen’s advice is to be
contacted. For the jurisdiction of Scotland, an approach is to be made to the Advice Director
Scotland. And for the complaints in Northern Island, the Consumerline is to be approached.1
In all the three jurisdictions the complaints which are redressed are related to faulty and
damaged goods, counterfeit goods, poor services, contracts, credit cards, etc.
The very first law which is applicable in this scenario regarding the refund of faulty products
is the Consumer Protection Act 1987. According to Section 2 of the aforesaid Act 1987, the
liability of persons is mentioned in cases of defective products. The provision provides that
whenever any damage is caused in any product either wholly or partly, the producer of the
product shall be liable for the damage. The section also states the liability of other persons
along with the producer like the person who has put his name on the product or used a
trademark or distinguish the product by any other identity. It also mentions the liability of the
person who has imported the product from any other place in his ordinary course of business
for the purpose of supplying and selling it to other person.2 Hence as per the provisions of
this law the manufacturer of the good shall be held liable for the fault in products.
Along with the liability of the manufacturer, United Kingdom legislature has also enacted
laws which gives the right to the consumers to make a claim against the retailer. One of the
enacted laws defining liability of the retailer is the Consumer Rights Act 2015. Section 9 of
the Act provides that the goods should be of satisfactory quality that is it shall meet the
standards of such level that a reasonable and prudent man considers it of good quality.3 The
quality of the good under this Act is considered as good which shall include the state and
condition of the goods. It shall also include the fitness of the good for the purpose for which
1 Howells, G. and Ramsay, I. eds., 2018. Handbook of research on international consumer law. Edward Elgar Publishing.
2Gov.uk, 2019. Consumer rights [Online]. www.gov.uk. Available at: https://www.gov.uk/consumer-protection-rights
3 Consumer Rights Act 2015, s 9.

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it is made, its appearance and finish, it is free from defects, it is safe and durable. 4 Hence it
was expected by the client that the good which he has purchased shall be fit for the purpose
for which the good is made and shall be of good and running condition but it has proven to be
faulty and damaged. Hence the provisions of the Consumer Rights Act 2015 shall be
attracted.
Section 11 of the Consumer Rights Act 2015 is also attracted which provides for the
provision that the good purchased under the contract shall match the description provided in
its respect.5 But in this case as per the facts the product failed to the condition provided
regarding it in the contract as the product is damaged. The purchased good has failed to
conform to the contract and hence the client is entitled to get the remedies available in the
Act.
There are various rights mentioned in the Act to which the client is entitled to in case there
has been any defect in the good or it has proved to be damaged. Under Section 20 and 22 the
client has a right of rejection which is called the ‘short-term right to reject’.6 This right
entitles the consumer to reject the good and put the contract of purchase to an end. And hence
after this rejection the consumer gets entitled for the refund of the amount of the good.7
Under sub-section 10 of Section 20 the consumer is entitled to get the same amount which he
has paid for the good. The Act also provides that the trader of the good shall not impose any
kind penalty of charges on the consumer at the time of refund.
The Act gives the consumer a right to make the claim for the refund within a time period of
30 days as per the provision mentioned in sub-section 3 of Section 22.8 The time of 30 days
get started either on the transfer of ownership of the good, or immediately after the delivery
of the goods, or in case the good requires installation, upon the completion of the installation
so that the good becomes ready to be used by the consumer. Hence the claim has been made
within the time period of 30 days and thus the client is within prescribed time to claim the
refund for faulty good.
Along with statutory provisions there are also other laws and regulations under which the
consumers are at aright of availing various remedies in case they have suffered loss under a
contract for the purchase of good which have proved to be unworking and damaged. These
remedies are available as per the international Treaties entered by European Union and which
automatically apply on United Kingdom as UK is a member state of EU.9 As a consideration,
the Consumer Sales Directives can be seen which provides a hierarchical order for the
remedies which are replacing defective goods or repairing it. In case this remedy cannot be
4 Which, 2019. Consumer Rights Act 2015 [Online]. www.which.co.uk. Available at: https://www.which.co.uk/consumer-
rights/regulation/consumer-rights-act
5 Consumer Rights Act 2015, s 11.
6 Which, 2019. Consumer Rights Act 2015 [Online]. www.which.co.uk. Available at: https://www.which.co.uk/consumer-
rights/regulation/consumer-rights-act
7 Consumer Rights Act 2015, s 20.
8 Consumer Rights Act 2015, s 22.
9 Benohr, I., 2013. EU consumer law and human rights. Oxford University Press.

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availed by the consumer, the consumer may get suitable reduction of the price and get the
contract rejected and rescinded. Article 3 of the aforesaid Directive provides that at first
instant the consumer may require the seller of the product to get the product repair or if the
repairing is not possible then replaced. Both the mentioned options shall be implemented free
of cost and no additional charge shall be levied on the consumer.10
Along with the statutory provisions, the judgments of the courts in United Kingdom can also
be taken into consideration while making the claim of refund. Two of the recent cases sets a
reminder for the sellers regarding the fitness of the goods in which they are dealing. The first
case is BSS Group Plc v Makers (UK) Ltd (t/a Allied Services)11 in which a company
supplied the customers particular type of adaptor and valves required in the project of
plumbing. Both the products proved to be incompatible and were damaged. The issue raised
in this case was whether the company supplying adaptor and valve is in breach of the terms
relating to the fitness of the group mentioned in the previous Act named Sales of Goods Act
1979. It was held by the court that the company was supplied with the type of valve and
adaptor required t be installed in the property through fax by the consumer and the consumer
relied on the company’s judgment regarding the quality of the good and its fitness for the
particular purpose. Hence the company’s failure to provide the consumer with the adequate
quality of good proves that the company stands in breach of the terms of the Act and statutory
provisions. On an appeal, the Court of Appeal also dismissed the appeal and upheld the
previous judgment of the court and held that the company should have known the purpose of
the consumer and supplied such goods which best fits their purpose.12 Hence the company
stands in breach of the statutory provisions and liable to compensate the consumers.
The second case was Trebor Bassett Holdings Ltd & Anor v ADT Fire and security Plc13 in
which the issue was relating to a fire suppression machinery which was claimed to be unfit
for the purpose. But in case it was held by the court that the consumer did not provide the
supplier with a particular purpose for which the good is needed. Hence, the supplier cannot
be held liable for the same. The court also provided that if the consumer specifically provided
for the purpose, the supplier would have stated regarding the impossibility of its
achievement.14
Thus, to settle, the counsel submits that the client has incurred loss on the purchase of the
good as the good is faulty and is unsuitable for the client’s purpose. And hence, as per the
provisions of the amended Consumer Rights Act 2015, the client claims full refund in respect
of the good which the client has purchased. It is also claimed that the refund shall be initiated
without any extra charge to be levied on the client. Thus, under the provisions of the
Consumer Rights Act 2015 the client rescinds and rejects the contract.
10 Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
11 [2011] EWCA Civ 809
12 Mondaq, 2019. UK: Fitness for Purpose: Two Recent Cases [Online]. www.mondaq.com. Available at:
http://www.mondaq.com/uk/x/143006/Consumer+Trading+Unfair+Trading/Fitness+For+Purpose+Two+Recent+Cases
13 [2011] EWHC 1936 (TCC)
14 Mondaq, 2019. UK: Fitness for Purpose: Two Recent Cases [Online]. www.mondaq.com. Available at:
http://www.mondaq.com/uk/x/143006/Consumer+Trading+Unfair+Trading/Fitness+For+Purpose+Two+Recent+Cases

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Bibliography
 Benohr, I., 2013. EU consumer law and human rights. Oxford University Press.
 Consumer Rights Act 2015, s 9, 11, 20 and 22.
 Gov.uk, 2019. Consumer rights [Online]. www.gov.uk. Available at:
https://www.gov.uk/consumer-protection-rights. (Accessed on 20th July 2019).
 Howells, G. and Ramsay, I. eds., 2018. Handbook of research on international
consumer law. Edward Elgar Publishing.
 Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
 Mondaq, 2019. UK: Fitness for Purpose: Two Recent Cases [Online].
www.mondaq.com. Available at:
http://www.mondaq.com/uk/x/143006/Consumer+Trading+Unfair+Trading/
Fitness+For+Purpose+Two+Recent+Cases. (Accessed on 20th July 2019).
 Which, 2019. Consumer Rights Act 2015 [Online]. www.which.co.uk. Available at:
https://www.which.co.uk/consumer-rights/regulation/consumer-rights-act. (Accessed
on 20th July 2019).