Cheeld v Alliott, [2013] EWCA Civ 508
The Court of Appeal allowed the defendants' appeal. It was held that the claimant blacksmith's breach of contract concerning the design and workmanship of a metal porch was a breach of a condition, not merely a warranty. As a result, the defendants had the right to reject the porch due to its unsatisfactory quality and to recover the deposit they had paid under the Sale of Goods Act 1979.
Key Principles:
A breach concerning the quality and design of a good can be considered a breach of a condition under the Sale of Goods Act 1979, allowing the buyer to reject the goods.
The nature and severity of defects, the expectation of the work's quality, and the costs and feasibility of rectification can determine whether a breach is of a warranty or a condition.
A delay in raising a complaint or actions taken post-receipt doesn't necessarily equate to affirming the contract, especially if concerns were expressed early on.
Facts & Application of the law: The claimant, a blacksmith, had an oral agreement with the defendants to create and install a metal porch for their house. After the defendants made an initial deposit, the porch was constructed, tried to be installed, taken away for further work due to the defendants' concerns, and then re-installed. The defendants, however, were still dissatisfied with the porch's design and quality. Eleven days post-installation, they voiced their dissatisfaction and refused to pay the remaining sums. They believed the subpar quality breached a condition of their contract.
The small claims court initially ruled in favour of the claimant, viewing the issue as a breach of warranty rather than a condition. The circuit judge upheld this but believed further evidence was needed to assess the defect rectification costs. The defendants then appealed to the Court of Appeal.
The Court of Appeal determined that the breach was of a condition given the nature of the defects and the expectation of high-quality workmanship for such an outdoor structure. It was also noted that the second defendant had shown early concerns about the porch, thereby negating the claimant's assertion that the contract had been affirmed by the defendants.
In a significant decision by the Court of Appeal, Civil Division, it was determined that a blacksmith's failure to provide satisfactory workmanship for a metal porch amounted to a breach of a condition under the Sale of Goods Act 1979. This pivotal ruling highlights the difference between breaches of warranty and conditions in contractual agreements, with the defendants rightfully rejecting the porch and being entitled to recover their deposit. This case serves as an essential reference for understanding the nuanced interpretations of breaches within the UK's contractual law.
