When buying and selling a boat or other vessel at sea, problems may arise with the vessel after it has been taken over. The question then becomes whether this is the buyer's or the seller's responsibility, and it can be difficult to reach an agreement between the parties. Often the seller has made a reservation that the boat is sold "as is", and there may be disagreement about how far such a general reservation actually extends.
Our lawyers assist in a large number of cases involving the purchase and sale of boats, and are happy to help you if you need legal assistance. We assist both buyers and sellers in local and national cases, and can assist in negotiations and cases before the courts.
Feel free to contact us today for a non-binding phone call!
What rights do I have?
Sometimes the seller makes a reservation that the boat is sold "as is" or "as is". Such a reservation means that the seller disclaims liability for any faults or defects in the boat. This does not exempt the seller from any liability, and you should not have to accept just anything. You may have a defect claim if the boat is in worse condition than you had reason to expect based on information about price, age and boat hours, or if there are hidden faults or defects. If the boat is purchased by a private individual, it must be in significantly worse condition than what is stated in the contract.
The freedom of contract in Norwegian law means that you can, in principle, enter into an agreement with the content you want. However, you should note that the Sale of Goods Act and the Consumer Purchase Act contain several mandatory provisions that will regulate the relationship between you and the seller. Among other things, the rules on complaints and the time limit for complaints will also apply to the purchase of a boat sold "as is".
Read more about delays and defects in our in-depth article on the subject here(LINK).
What does the Sale of Goods Act say?
The Sale of Goods Act applies to agreements on the purchase and sale of vessels between private individuals, and provides a greater degree of freedom between the contracting parties.
Section 19 of the Sale of Goods Act regulates items, in this case boats, that are sold "as is". This means that the buyer is not liable for visible defects or deficiencies, as well as normal wear and tear resulting from normal use.
Even if the boat you have bought is sold as is, there is still a defect if the boat does not correspond to the information provided by the seller, if the seller has neglected to provide information about important aspects of the boat at the time of purchase, or if the boat is in significantly worse condition than the buyer had reason to expect based on the size of the purchase price and other circumstances. The fact that the seller has withheld or provided incorrect information must also be assumed to have affected the purchase.
What does the Consumer Sales Act say?
The Consumer Sales Act applies to agreements on the purchase and sale of vessels between a private individual, or consumer, and a person or dealer acting as a business. The Act safeguards the rights of consumers in relation to resourceful traders.
For boats sold "as is", section 17 of the Consumer Purchase Act states that there is nevertheless a defect when the item is in poorer condition than the consumer could reasonably expect on the basis of the reservation, the amount of the purchase price and other circumstances.
There is also a defect when the seller has neglected to provide information about conditions relating to the item or its use that the seller should have known about and that the consumer had reason to expect, if the omission can be assumed to have affected the purchase.
Finally, a defect exists when the boat does not correspond to the information provided by the seller in its marketing or otherwise about the boat and its use, if the seller does not show that the information was clearly corrected before the purchase, or that it could not have affected the purchase.
Boat insurance - legal aid coverage
In your boat insurance, you have legal aid cover for your legal expenses in the event of a dispute with the seller or buyer. The insurance company requires documentation of the dispute to cover legal assistance. When covered by the insurance, you as a customer normally only pay 20% of the legal fees and a deductible of between NOK 3,000 and 4,000.
Our assistance
Are you involved in a boat dispute and wondering what rights you have as a buyer or seller? Then our lawyers can assist you!
Contact us for a no-obligation consultation, and get assistance from a dedicated team of lawyers who have extensive experience in buying and selling boats.