I Have Been Mis-Sold A Horse l Consumer Rights Act l Blog

6 December 2024by Naomi Cramer
I Have Been Mis-Sold A Horse l Consumer Rights Act l Blog


In a contract, there are express terms and they are supplemented by terms implied by necessary implication to make sense of what has been expressly agreed – terms that are so obvious that go without saying.

The terms can be implied by statute into business-to-consumer contracts for sale and supply of goods, including animals.

Imagine you bought a horse from a dealer as you enjoy horse riding. You made the purchase after viewing the horse and doing some riding on it. After taking the horse home, you realise that the horse is not as fit as it should be, given its breed, size, age, health conditions, etc. What can you do in this case?

Who is a trader?

In this scenario, the Consumer Rights Act 2015 (CRA) will apply and the first thing you need to determine is whether the dealer falls within the definition of a ‘trader’ under section 2 of the CRA, which refers to:

a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf’.

Implied terms in the agreement

The second thing you need to determine is whether the dealer has breached the relevant terms implied by the CRA, which are:

  • Section 9 – where goods are sold/supplied in the course of a business, there is an implied term that the goods will be of satisfactory quality;
  • Section 10 – where goods are sold/supplied in the course of a business, and the buyer makes known to the seller his purpose for the goods (either expressly or impliedly) and reasonably relies on the seller’s skill/knowledge, there is an implied term that the goods will be fit for that purpose; and
  • Section 11 – where there is a sale/supply by description there is an implied term that the goods will correspond with that description.

You need to show that the horse is not of satisfactory quality by finding out why the horse is not as fit as it should have been or was claimed to be. Is it because its breed/age is different from what is stated in its passport/sale and purchase agreement? Or is it because it has been suffering from some hidden health conditions?

The conversations you had with the dealer are also relevant because they can demonstrate the level of knowledge the dealer had/should have had in respect of your purpose of purchasing the horse.

It is not difficult to understand that the level of fitness required from a horse for a professional equestrian is different from the one for an amateur horse rider. Further, if you ask significant and probing questions relating to the horse’s levels of fitness, health, and other matters relating to the horse, this may assist you further if the trader has misled you.

What are your rights?

Pursuant to the CRA, you have:

  • The short-term right, i.e. 30 days after it has been bought and delivered, to reject and get a full refund;
  • The right to replacement (if appropriate); and
  • The right to a price reduction or the final right to reject and get a partial refund.

Your common law right to claim damages is unaffected by the rights set out in the CRA, so if the remedies set out in the CRA do not fully compensate you for the losses suffered, damages may be awarded too. In this regard, you should seek advice from a solicitor in respect of the same.

Comment

Buying a horse can be as expensive as buying a car and you should read the sale and purchase agreement carefully and seek legal advice, if necessary, before signing the same. The more questions that are asked of the Trader by a purchaser, the more likely it is that you will discover any hidden issues or, if the Trader misleads you, this of itself may lead to a claim of misrepresentation.

This article is for information only and does not constitute legal/financial advice. Please contact us for advice tailored to your specific position. Some of the content presented on our website has been generated with the assistance of Artificial Intelligence (AI). We ensure that all AI-generated content meets our high standards for accuracy and relevance.



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by Naomi Cramer

Naomi is a highly skilled NZ Court lawyer with more than 25 years & is Family Law Expert in Child Care Custody Disputes.

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