A restricted right to rescind for consumers

A restricted right to rescind for consumers

The Scottish Law Commission recently produced its Discussion Paper on Remedies for Breach of Contract. A suggested proposal is that additional remedies of price reduction and right to cure be given to a creditor faced with a breach of contract.

Such remedies are currently available to consumers under the Consumer Rights Act 2015, which provides: a short term right to reject; a right to repair or replacement; and finally, the right to a price reduction or a final right to reject.

There is a hierarchy in terms of when these remedies can be exercised. The short term right to reject may only be exercised within 30 days of ownership and possession of the goods passing to the consumer. The right to seek a price reduction or exercise the final right to reject can only be exercised after the trader has been given an opportunity to repair or replace the goods (s24(5)). While these additional remedies are said to provide greater rights for consumers and, do not prevent consumers from seeking other remedies (s19(90-(11)) the consumer is not able to rescind for material breach, but must use the time limited short term right to reject or the final right to reject becomes available (s19(12)).

Full analysis of the operation of consumer remedies, the law of sale, and many other developments in commercial law are covered in the latest edition of Commercial Law in Scotland

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