Are you buying a car, a house or an antique tank? We recommend that you pay attention to the so-called assurance of the characteristics of the object of purchase. According to Section 2103 of the Civil Code, if the defect was already apparent when the contract was concluded, the buyer does not have the right to complain about it. However, this does not apply if the seller expressly assures the buyer that the object purchased has certain characteristics.  In its judgment, the Supreme Court considered what moment is relevant for the assessment of the assurance of characteristics and concluded that it is not only the moment of signing the contract by one of the parties, but also the entire process of concluding the contract.

What was at stake?

In the litigation, the claimant (the seller) sought payment of the purchase price for the rail tracks for a T-72 tank and also a contractual penalty. The defendant (the buyer) claimed that the tracks were defective, even though the plaintiff had assured it that they were defect-free, which should have been apparent from a declaration that the plaintiff was the owner of the tracks.

The Supreme Court pointed out the error of the courts, which interpreted Section 2103 of the Civil Code too narrowly by focusing only on the specific moment of signing the contract and evaluating only the content of the contract. The courts did not see the declaration of ownership of the belts made by the applicant as a declaration of flawlessness. However, the Supreme Court stressed that this provision does not only apply to assurances made at the time of signing the contract, but also at the time of its conclusion, i.e. throughout the process of negotiating the contractual relationship.

What does this imply?

In its decision, the Supreme Court stated that the seller's assurance of the characteristics of the goods, including that the goods are free from defects, need not only be part of the contract of sale. It is sufficient if such assurance was given during the negotiation of the contract. In assessing whether it was given, it is necessary to assess all the representations made by the parties throughout the contract negotiation process.

In practice, such assurances could be given, for example, in an online advertisement when buying a vehicle, in the description of products offered on e-shops or even in a verbal discussion with the dealer. However, in the case of oral communications, it may be difficult to prove.

For these reasons, we recommend that you keep the following in mind when entering into purchase contracts:

· For the seller: Make sure that your statements about the characteristics of the goods are accurate and truthful. Consider pointing out any defects;

· For the buyer: Do not take the seller's assurances lightly, but inspect the goods thoroughly. If in doubt, ask questions and insist on written confirmation of the characteristics of the goods.

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