Defect and the Consequences of the Defect

In the previous article was described when goods or digital content or service are considered defective.

The defect must be evaluated based on the condition of the goods, digital content or service at the time of supply. The seller is also liable for hidden defects, i.e., for defects that existed at the time of supply although the defect appeared later. If continuous provision of digital content or service over a longer period has been agreed in connection with the sale of a goods including digital elements, the seller is liable for defects on the digital content or service that occurs during the period the seller is liable for non-conformity of the goods or during the period the digital content or service is agreed to be provided, whichever is longer. The seller is also liable for any defect that occurs due to neglect of updates and occurs within the period the updates are due to be provided according to the law. In the case of continuous provision of digital content or service over a longer period, the seller is liable for any defect that occurs within the time the digital content or service is contractually to be provided.

The defect is deemed to have existed at the time of supply if it appears within one (1) year of that time, unless the contrary is proven, or the assumption is incompatible with the nature of the defect or the goods, digital content or service in question. If a defect occurs in digital content or service provided over a continuous period during the time, the defect is presumed to be the seller´s liability, unless the seller proves otherwise.

If the goods deteriorate after they have been delivered to the buyer, the goods are considered defective if the deterioration is due to a breach of contract by the seller.

When the buyer notices a defect, the buyer must inform the seller. Generally, the notification must be made within a reasonable time after the buyer has noticed or ought to have noticed the defect. However, notice of a defect may always be given within two months of the discovery of the defect.

In case the goods, digital content or service are defective, the buyer has a right to withhold payment of the purchase price. The buyer shall, however, not have the right to withhold an amount that evidently exceeds the claims that the buyer is entitled to based on the defect.

The buyer is entitled to have the defective goods, digital content or  service brought into conformity (repair or redelivery), unless this would be impossible or would impose costs on the seller that would be disproportionate.

If the rectification of the defect or re-delivery is out of the question or the remedy has not been performed as specified in the law, the buyer has the right to demand a price reduction proportionate to the defect, or cancel the contract, except if the defect is of minor significance. The buyer has the right to demand price reduction or cancellation of the contract immediately if the defect is so serious that its rectification is out of the question.

The buyer has also the right to claim compensation for the damage it has incurred from the seller. The seller is liable for indirect damages only, if the damage has occurred because of negligence on seller’s part or if the goods, digital content or service  do not conform to the Seller’s specific undertaking. The buyer always has the right to compensation for damages attributable to a defect in title, if the buyer has been in good faith.