We advise companies in the area of purchase law and represent them in court disputes. The focus is on the national sales law according to contractual or legal regulations. In the area of cross-border sales of movable goods, however, we also advise and represent contracts on the basis of the United Nations Convention on Contracts for the International Sale of Goods (CISG).
Problem Areas in Purchasing …
Existence of a defect
Frequently, there is already a dispute between the parties as to whether there is a material defect at all. The concept of a material defect is not easy to be determined, particularly in the case of complex products.
Supplementary performance in case of material defects
If there is a defect in the goods sold, the buyer can demand supplementary performance. Consideration is given to the delivery of a new item or the repair of the defective item. For the seller, a supplementary performance can be associated with considerable costs.
Reduction of the purchase price
If the supplementary performance is missing, a reduction of the purchase price can be possible.
Cancellation of the contract
If the prerequisites for rescission of the purchase contract are met, the entire performance exchange is reversed.
Compensation for damages
In the case of a defect in quality, the Seller may also be liable for damages which are not directly in the sold good itself by way of damages. These include, depending on the situation, lost profits, legal costs, appraiser costs, additional costs for covers, etc.
Often spare parts or goods are defective. In such cases the question arises if the substitute distributor or producer of the good, who sold it to the seller, is liable for such defects. There are provisions for the supplier’s regress in sec. 478, 479 BGB (“Entrepreneur’s Regress”). According to this, the trader may, when selling a newly manufactured item, demand compensation from his supplier for the expenses which he had to bear in relation to the consumer if the deficiency claimed by the consumer had already existed when the risk was transferred to the trader.