Ship is Goods, Rules Court

We tend to think that consumer protection legislation applies only to normal retail transactions, but a recent case illustrates that it can also bite when sales of very large items (in this case a defective ship) are made between business customers.



The ship had a defective engine and broke down the day after the sale.



The buyer sought damages, arguing that the Sale of Goods Act 1979 (SOGA) applied since the ship was a ‘good’ which was not fit for purpose.



The Commercial Court agreed and, in the absence of a clause excluding the SOGA from the contract, ruled that the claim for damages could be brought against the vendor.