Buying and selling a boat - rights in the event of delays and defects

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 responsibility of the buyer or the seller, and it can be difficult to reach an agreement between the parties. The seller may be liable for circumstances on his part that have led to the delay or defect, but doubts may also arise as to whether the defect first arose after the buyer took possession of the vessel.

Sometimes the seller makes a reservation that the boat is sold "as is". 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 seller has withheld information, provided incorrect information, or if the boat is in worse condition than you had reason to expect based on information about price, age and mileage. If the boat was bought by a private individual, it must be in significantly worse condition.

When is there a delay?

If the delivery of your boat is delayed, you may be entitled to cancel the purchase and receive compensation for the costs that the delay has caused you.

A delay occurs when the boat is delivered at a later time than agreed between you and the seller. If a time for delivery has not been agreed, the Consumer Purchase Act states that the boat must be delivered "without undue delay", but no later than 30 days after the purchase was made. For purchases between private individuals, the Sale of Goods Act only stipulates that the boat must be delivered "within a reasonable time" after the purchase.

In the latter case, it can be difficult to determine when there is a delay. At Advokatfirmaet Molteberg Nilsen, we have lawyers who are experts in sales law, who can advise you on when a delay exists and what claims you can make against the seller as a result of the delay.

Does the boat have a fault or defect?

Your new boat has a defect if the condition of the boat is not as you would expect according to the agreement entered into. This applies to both material and technical condition, and regardless of whether the boat is new or used. If nothing special has been agreed, the boat must be in accordance with what can normally be expected based on the boat's age, use, driving hours and the like. For example, there will be a defect if the advertisement states that the boat's engine is rust-free, but on delivery it turns out to have major rust damage. As a buyer of a used boat, you cannot expect the same as when buying a new boat. However, new boats can also have faults and defects, but not as a result of use or lack of maintenance.

If the vessel you have purchased has a defect, it may provide grounds for a claim against the seller, in the form of a price reduction, rectification, termination of the agreement or compensation. The claim can be made regardless of whether the seller is a private individual or a business.

Rectification when buying a boat - rectification of defects or deficiencies

When you make a claim for defects against the seller, you must generally first accept that the seller will attempt to correct the defect or rectify the defect. This must be done within a reasonable time and without cost or significant inconvenience to you. The seller may make two attempts to rectify the same defect. If the buyer corrects the defect himself, the defect claim and the possibility of claiming rescission will lapse.

Rectification is often less relevant if the seller is a private individual. However, if the seller offers to rectify the defect, you cannot object without reasonable cause. In such a situation, however, a price reduction is more relevant.

Price reduction when buying a boat

If the defect is not corrected by the seller, you may be entitled to a price reduction. The price reduction should normally correspond to the reduction in the value of the boat. The vessel you have purchased has a value-reducing defect if it has damage or defects that reduce its market value. In special cases, the price reduction may instead be set at the amount it would cost to get the boat in a defect-free condition.

Claiming a price reduction does not preclude you from claiming compensation in addition. While a price reduction is intended to cover the reduced market value of the vessel as a result of a defect, compensation may cover other losses incurred as a result of the defect, such as the cost of an inspection by a boat repair shop.

Cancellation of boat purchase

In some cases where rectification or price reduction is not satisfactory, you can demand rescission of the purchase. In such cases, there must be a breach of contract on the part of the seller, which gives the buyer reasonable grounds to terminate the contract. Cancellation of the contract means that the purchase contract with the seller is terminated and that all benefits in connection with the contract are returned. You will be refunded your money in return for the seller returning the boat.

If you have bought the boat from another private individual, you can cancel the purchase under the Sale of Goods Act if the defect constitutes a material breach of contract. If the boat was purchased from a boat dealer, you can cancel the purchase under the Consumer Purchase Act if the defect is not insignificant. The right to cancel the contract is thus broader if you are acting as a consumer than if you are dealing with another private individual.

Compensation as a result of a boat purchase

If the delay or defect results in expenses for you, you may be entitled to have necessary additional expenses reimbursed by the seller. As the buyer, you must have suffered a financial loss, and it is therefore important to keep receipts so that you can document the expenses you have incurred.

Our recommendation

If there is a delay or defect, you must complain to the seller in order to trigger legal effects. In the event of a delayed delivery or suspicion that the boat you have purchased is in poorer condition than what follows from the agreement with the seller, it is therefore important to complain in writing to the seller as soon as possible.

Read more about complaints and the various deadlines that apply in our article here (LINK).

Boat insurance - legal aid coverage

Your boat insurance policy includes legal aid coverage for your legal expenses in the event of a dispute with the seller or buyer. The insurance company requires documentation of the dispute in order to cover legal assistance. With insurance coverage, you as a customer normally only pay 20% of the legal expenses and a deductible of between NOK 3,000 and 4,000.

Our assistance

Are you involved in a boat case 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 with extensive experience of buying and selling boats.