Rectifying Defects, Agreement on Rectification and Having the Defect Remedied

If the performance of a contract is defective, the buyer may demand rectification of that defect at the seller’s expense. The party has the right to demand the rectification provided that the rectification will not cause unreasonable costs or inconvenience to the seller.

Instead of rectification, the seller has a right to perform a new delivery if it will not cause any essential inconvenience to the buyer. Sometimes, it is more reasonable to deliver new serviceable goods than to perform a difficult repair. The buyer also has a right to demand a new delivery instead of repair if the breach of contract is of substantial importance to them and the seller knew or ought to have known this.

The termination of contract is possible only if the remedying the defect is out of the question or not performed within a reasonable time. Instead of termination, the buyer may also demand a reduction in price.

The seller has a right to remedy the defect if it happens at the seller’s expense and within a reasonable time without causing any essential inconvenience to the buyer.

The parties may also conclude an agreement on rectifying the defect. If the parties choose this option, it is important to agree in detail how the rectification is to be carried out. It is essential to establish agreements regarding the party responsible for conducting repairs, the timeframe for completing repairs, and the financial arrangements for covering repair costs. Once the parties have reached a consensus on rectification, it becomes invalid to cite the initial defect. However, any new defects arising from the rectification process may still be addressed.

If the seller’s performance is defective and the seller takes no action to rectify the defect, the buyer may have the goods repaired themself and demand reasonable compensation for the repair costs from the seller.

The buyer must notify the seller of their claim for rectification or a new delivery either concurrently with their notice of defect or within a reasonable timeframe thereafter. Failure to do so results in the loss of the buyer's entitlement to demand rectification or a new delivery. However, if the seller has displayed gross negligence or has acted in breach of good faith and fair dealing, the buyer retains the right to make a claim even in the absence of prior notification.

The provisions for rectifying defects only apply when the goods are defective and do not extend to instances of delayed performance.