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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7590
Experience:  BA (Hons), PgDip, Practising Solicitor
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In August 2010 I signed a lease for a digital press. The

Resolved Question:

In August 2010 I signed a lease for a digital press.

The lease was for a 5 year period

The company that was to lease me the equipment said they did not have this particular model in stock at that time but would deliver it when ready

As of today's date the equipment has not been delivered but I have not been asked to make any payments either

The equipment concerned is no longer produced as new

Am I still obliged to accept the equipment if it is ever delivered?
Submitted: 5 years ago.
Category: UK Law
Expert:  Thomas replied 5 years ago.
Thanks for your question.
To enable me to answer your question could you please respond to the following using the same numbering:-
1. Is this a business to business contract
2. When did they say they would send it once it was in stock and did you at the time accept their position
Kind regards.
Customer: replied 5 years ago.
1. Yes

2. The delivery was imminent which was why I signed the lease - in order to speed up the process
Expert:  Thomas replied 5 years ago.
So, they said it was out of stock and would deliver when in stock when you signed the contract in Aug 2010, correct?

You have had no communications with them since. is this also correct?

Customer: replied 5 years ago.
Yes, they said they would deliver as soon as they had received the equipment

In January 2011 they sent a second hand machine which was unserviceable - it had no toner or drum, in order for this to become useable it had to be sent back to the manufacturer for refurbishment

I said I would not accept it because it was not in working order and it stood in my warehouse until June 2011 when the lease company took it away In early July the lease company contacted me to say they had a different machine which they would bring asap - I asked for details but they have not sent them and I have not heard from them since
Expert:  Thomas replied 5 years ago.

Thanks for your reply.

The contract is legally binding if it was executed correctly. However, I should think that the company have clearly breached express terms of the contract because you appear not to have had any benefit from it at all.

Get the contract out and have a look at the express terms of the lease, what you were to receive in terms of the press (type, quality etc) and whether they are permitted to offer a replacement of a slightly different style. If they have fallen short of the express terms you identify then this is a breach of contract. If the breach of contract is sufficiently serious so as to go to the root of the contract (ie. the heart) and deny you all/substantially all of the benefit of the contract then you would be entitled to terminate the contract. This is called a “repudiatory breach of contract”.

If the nature of the breach is not repudiatory then you would only be permitted to sue for damages.

Provided there are express terms (or terms you otherwise agreed with them) which have been breached then I would suggest you write to them stating that you consider these breaches of contract to be repudiatory in nature and therefore consider the contract as terminated.

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Kind regards,

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