Buying a boat should be an exciting time, whether you are purchasing a yacht to enjoy sailing along England’s beautiful coastlines, a commercial vessel to help grow your business, or a houseboat to call your own. However, that excitement can quickly drain away if your new boat does not meet the agreed design specification or isn’t fit for purpose. If you have found yourself in this unfortunate position, here are some steps you can take to resolve the matter.
Step 1: Review your contracts
If you have bought a boat that isn’t up to scratch, you should start by reviewing your contracts. Whether it’s a sale and purchase agreement or a build contract, these legally binding documents set out the seller or boat builder’s legal obligations, enabling you to hold them accountable.
Should your boat fail to meet the agreed design specification, the manufacturer will likely be in breach of your build contract, providing you with a range of legal options to pursue.
If you have purchased a faulty boat, your sale and purchase agreement may include warranties or guarantees entitling you to have the vessel repaired or a cooling-off period allowing you to return the boat.
If you are a commercial enterprise it is important to remember that business-to-business transactions rights and protections differ significantly from those in business-to-consumer transactions discussed at 5 below. For example, the Consumer Rights Act 2015 does not apply to business-to-business contracts. It is designed to protect individual consumers, not businesses.
Unlike business to consumer transactions, business-to-business contracts typically do not include a cooling-off period. Once a contract is agreed upon, it is binding unless otherwise specified.
While some protections against unfair terms exist, they are less stringent in business-to-business contracts compared to business-to-consumer contracts. Courts may intervene if terms are deemed excessively unfair. Business-to-business contracts can be formed in various ways, including verbal agreements, email exchanges, and even clicking a button on a website.
The Sale of Goods Act and Supply of Goods and Services Act does apply to business-to-business contracts, but the rights are not as extensive as in business-to-consumer contracts. For example, businesses do not automatically get a refund if a product is faulty.
It’s crucial for businesses to thoroughly review and understand the terms and conditions of any contract before signing. If you have specific concerns or need legal advice, you can trust Scott Bailey’s Company Commercial team to steer you in the right direction.
Step 2: Check whether your boat is under warranty or comes with a guarantee
Most new boats come with a manufacturer’s warranty. Under the warranty, you should be able to have any defects fixed quickly and easily.
Used boats are unlikely to be covered by the manufacturer’s warranty unless you transferred it when you purchased the boat. However, some sellers will offer a guarantee on used boats, which could protect you if the manufacturer’s warranty is no longer valid.
Step 3: Contact the seller or manufacturer
Before pursuing other avenues, it is always worth raising the issue with the seller or boat builder. Mistakes happen, and they may resolve the issue in good faith, whether that means a repair, replacement or refund or other avenues available in accordance with your contract with them. This is where thoroughly reviewing your contract as per step 1 above will have helped.
Step 4: Conduct/Commission a boat survey
A marine surveyor will be able to provide you with a boat survey detailing any defects or discrepancies between your vessel and the design specification and should be able to provide you with a survey report which will be valuable in discussions with the seller or manufacturer or sued as evidence in any future legal proceedings.
Step 5: Seek expert legal advice
If your seller or boat builder will not rectify the issue with your boat, you may have to take legal action. An experienced solicitor will be able to provide you with reliable advice on your position and the most effective ways to resolve your dispute.
Even if you do not have a contract in place or it does not cover your specific issue, you may still be protected under the law. For example, if you purchase your boat from a retailer, the Consumer Rights Act 2015 protects consumers as follows:
Your boat must match the description: If your seller or boat builder has provided you with a design specification and your boat does not match it, you are protected by the Consumer Rights Act.
It should be fit for its intended purpose: If you are planning ocean crossings it better handle storms. If you have purchased a boat and discovered a defect that means it is not fit for purpose, you have a right to a repair, replacement or refund.
The Consumer Rights Act gives you the right to reject: if your boat is not as described, of satisfactory quality (no leaky hulls or creaky masts), fit for purpose, or does not meet the design specification, you are entitled to return it for a refund at any point within the first 30 days.
You also have the right to repair or replacement: at any point within the first six months of owning your boat, you are entitled to have it repaired or replaced if there is a defect or it does not meet the agreed design specification. Should the seller be unable to repair or replace the vessel, you will be entitled to a partial or full refund.
If you find faults within six months of purchase, you can seek compensation or a refund in accordance with your rights above. Just remember, proving the fault existed at delivery is your job, like tracking down a slippery eel.
There are different consequences when you buy from an individual (as opposed to a retailer) as there is no obligation on a private seller to disclose any faults. This is particularly important as unlike the motor trade, where dealers often own the cars they sell, in the boating world, most operators are brokers. They’re like matchmakers, connecting you with boats on behalf of third-party owners.
However, misrepresenting goods in not permitted and the Consumer Rights Act says the goods you get must be as they were described to you by the seller. For example, something second-hand should not be described as new. If it is, the seller will be in breach of contract.
Seeking expert legal advice doesn’t necessarily mean going to court. At Scott Bailey, our highly skilled litigators pride themselves on helping clients find effective and practical solutions.
You may be able to resolve your dispute through ADR (alternative dispute resolution), which includes options such as mediation or arbitration. ADR aims to resolve disputes by bringing the two parties in a case together in a non-court-based legal process. It is often quicker and cheaper for all parties involved, making it an excellent option.
However, should ADR fail or if it is unsuitable in your case, going to court may be your only option. Drawing on their extensive experience, you can trust Scott Bailey’s excellent litigation team to provide you with expert guidance throughout the process and protect your interests tenaciously through the courts.
View our guide on dispute resolution options for more information on the various processes available to you.
If you have purchased a boat that does not meet the agreed design specification or is not fit for purpose, Scott Bailey’s expert litigation solicitors are here to help. Contact us today to arrange a consultation. Seeking legal advice before buying a boat is the best way to ensure you’re protected if issues arise. Our highly skilled marine law solicitors regularly advise clients on purchasing or selling boats alongside a range of other marine legal matters.
