Buying and sale

Selling a car privately usually goes well, but in some cases disagreements can arise afterwards. It happens that the buyer contacts the seller weeks or months after handover with demands for a price reduction, repairs, compensation or, in the worst case, cancellation of the purchase – often on the basis of alleged errors or defects. Such situations can be experienced as both unpleasant and confusing, especially when one believes that one has acted in good faith. Nevertheless, it is important to take such claims seriously and handle them in the right way.

‍

What does a claim mean?

A claim for a warranty means that the buyer claims that the car is not as agreed, or that it has a defect or defect. The seriousness of the defect is decisive for what rights the buyer has. In sales between private individuals, this is regulated by the Norwegian Sales Act. The law stipulates, among other things, that the goods must be in accordance with what has been agreed and what the buyer could reasonably expect, based on the car's age, price, mileage and general condition.

An important point is the "sold as is" clause, which is often used in private car purchases. Even with such a clause, the seller can still be held liable if:

• Incorrect information has been provided that has affected the purchase.
• Significant information known to the seller about whether the car has been impounded.
• The car is in significantly worse condition than the buyer had reason to expect based on the price and other conditions.

‍

When can the purchase be cancelled?

Cancellation of a car purchase is the most drastic consequence of a claim for damages. This means that the purchase agreement is cancelled, the buyer returns the car, and the seller refunds the purchase price. In order for a car purchase between private individuals to be cancelled, the defect must be "material". This is a high threshold and requires that the defect is of such a nature that it significantly affects the usability or value of the car, and that it cannot be repaired without disproportionate costs or inconvenience. Examples include serious engine defects, incorrect information about significant damage, or manipulated mileage.

‍

Your rights as a seller

As a seller, you also have rights. First and foremost, you are entitled to receive a specified and justified claim from the buyer. You also often have the right to try to remedy the defect yourself, if you accept that there is a fault. It is important not to acknowledge a claim without having considered the matter thoroughly. Many claims are undocumented or unreasonable, and it is entirely possible to reject them if they have no legal basis.

‍

When should you contact a lawyer?

If the claim is large, unclear, or the buyer is difficult to work with, you should seek legal advice. A lawyer can assess the case objectively and help you respond legally.

Many ordinary car insurance policies also include legal aid coverage that can cover a large portion of legal fees in disputes. The prerequisite is that the car was insured at the time of sale, and that there is a genuine dispute where the buyer has made a claim that you have disputed.

‍

Would you like help and guidance with your case? Contact our automotive lawyers for a no-obligation chat.

‍

When purchasing expensive items such as a car, boat, electronics or furniture, errors and defects can quickly lead to major financial losses. If you experience problems that are not resolved, or if you encounter resistance from the seller, you should keep these things in mind.

‍

When does the Consumer Purchase Act apply?

The Consumer Purchase Act applies when you, as a private individual, buy a product from a trader – either in a store or online. The law applies regardless of whether the product is new or used, and whether it was purchased in Norway or from a Norwegian online store. However, it does not apply to purchases between two private individuals; in that case, the Purchase Act applies, and you do not have as strong a protection

‍

What is considered a deficiency?

A product has a defect when it does not correspond to what you were told, either in terms of properties, function or quality. It can also be a matter of incorrect marketing or missing information. The Consumer Purchase Act sets clear requirements for what you as a buyer can expect, and gives you protection against such defects.

‍

What can you claim?

If the item you have purchased turns out to be defective, you have rights that are often worth exercising. In the first instance, the seller has the right to attempt to correct the defect (section 29 of the Norwegian Consumer Code). If this is not possible, you can:

• have the item exchanged for a new one (redelivery)
• demand a price reduction (fkjl. §31)
• cancel the purchase if the defect is significant (fkjl. § 32)
• claim compensation for financial loss (FKJL § 33)

Cancellation is primarily applicable if rectification or replacement is not successful. Cancellation can therefore be referred to as a secondary breach of contract effect. If the seller proves that the defect is insignificant, the consumer cannot demand cancellation. Typical examples of when cancellation may be applicable are extensive engine problems on a newly purchased car, or repeated defects that make it unreasonable to wait for several repair attempts.

‍

Complaints – deadlines and documentation

To make a claim, you must file a complaint within a reasonable time – normally no later than two months after you discovered the defect. The absolute complaint period is two years, but for goods that are intended to last longer, such as white goods, electronics or vehicles, it can be up to five years.

‍

The complaint should always be in writing and contain a clear description of the defect and what claim you are making. It is not a requirement by law that the complaint be in writing, but you can more easily prove that it was sent within a reasonable time if you have written proof. Feel free to attach pictures, receipts and any documentation from professionals.

‍

Do you need legal assistance?

Many people are not aware that the legal aid coverage in your home insurance can often cover a large part of your legal fees. The lawyer can help you assess whether there is a legal defect, advise you on further steps and file a claim against the seller. This is particularly useful if you want to cancel the purchase or claim compensation.

‍

If you are unsure whether you have a case, or need help filing a complaint, contact us for a free meeting.

Experiencing a seller withdrawing from a deal can be frustrating and creates uncertainty. It's important to know your rights as a buyer and what steps you can take in such a situation .

‍

When is an agreement binding?

In Norwegian law, the general rule is that agreements are binding when both parties have agreed on essential terms. This applies regardless of whether the agreement is made orally or in writing. For example, if a seller accepts your offer for a home, the agreement is considered binding on both parties, even if you have not signed a written agreement.

‍

What can you do if the seller withdraws?

If the seller withdraws from a binding agreement without valid reason, you as the buyer have several options:

1. Demand fulfillment of the agreement: You can insist that the seller carry out the sale in accordance with the agreement. This means that you demand to take over the item as agreed.
2. Claiming compensation: If the seller refuses to fulfill the contract, you may be entitled to compensation for the financial loss you suffer as a result of the breach of contract. This may include the price difference if you have to buy a similar item at a higher price, as well as any additional costs you have incurred.

‍

How to proceed?

• Document the agreement: Make sure to have written documentation of the agreement, such as emails, messages, or contracts. This will strengthen your case if a dispute arises.
• Provide written evidence: If the seller withdraws, contact them and make it clear that you expect the agreement to be honored. It may be advantageous to do this in writing, or to follow up a verbal conversation with a written report by email. Ask for an explanation of why the seller wants to withdraw.
• Seek legal assistance: If the situation does not resolve through dialogue, it may be a good idea to contact a lawyer with experience in contract law for guidance on next steps.

‍

Exceptions and special cases

There are situations where the seller may have the right to withdraw from the agreement, for example if there are significant misunderstandings, non-payment by the buyer, or other circumstances that render the agreement invalid. Each case is unique, and it is therefore important to carefully consider all circumstances.

Dealing with a breach of contract can be complicated, but with the right information and assistance, you can protect your rights as a buyer. Feel free to contact one of our lawyers for individual guidance!