Case law

  • Case Details
    • National ID: 7 U 235/05
    • Member State: Germany
    • Common Name:link
    • Decision type: Other
    • Decision date: 28/06/2006
    • Court: Oberlandesgericht (Appellate court, Celle)
    • Subject:
    • Plaintiff:
    • Defendant:
    • Keywords:
  • Directive Articles
    Consumer Sales and Guarantees Directive, Article 2, 2. Consumer Sales and Guarantees Directive, Article 3, 3. Consumer Sales and Guarantees Directive, Article 3, 5.
  • Headnote
    If a defect in the form of a shrinkage cavity in the engine block (casting defect occurred during the production) leading to an oil leak appears on a new car and a repair would require the whole engine block including the cylinder head to be replaced, it cannot be deemed disproportionate if the buyer chooses to demand the replacement of the car by another one of the same model.
    The objection of disproportionality can be raised until the buyer rescinds the contract.
    “Fault” in the terms of § 281 BGB with respect to the relevant point in time refers to being answerable at the time the deadline for repair or replacement expires and can materially refer to the omitted replacement of the car, even if the seller is not responsible for the original defect.
  • Facts
    The plaintiff demands the unwinding of a contract of sale on a mobile home together with damages from the defendant.
    On 7 April 2004, the plaintiff bought a mobile home from the defendant for EUR 39.334. It had been pre-registered for one day so it could be sold as a second-hand car (“one-day-registration”). After having driven for approximately 700 km, the plaintiff discovered an oil leakage. In agreement with the defendant, the vehicle was brought to a garage for inspection; however, the search for defects was of no success. In August 2004 the camper was inspected again due to repeated oil leakage. It was discovered that the camper had a so-called shrinkage cavity in the engine block. As a result, the defendant by letter dating from 13 August 2004 offered the repair of the defective motor by replacement of certain engine parts (not including the cylinder head). By letter dating from 16 August, the plaintiff suggested an out-of-court settlement demanding the delivery of a completely new engine and at the same time set the defendant an according deadline. The defendant in a letter dating from 20 August 2004 reacted by offering to replace the main part of the engine (engine block and cylinder head). By letter dating from 1 September 2004 the plaintiff demanded the delivery of a new vehicle and set a deadline until 1 October 2004. After the deadline had expired, the plaintiff by letter dating from 12 October 2004 demanded damages because instead of performance and by letter dating form 16 November 2004 declared the rescission of the contract. By letter dating from 25 November 2004 the defendant’s authorised proxy contacted the plaintiff and under reference to § 439(3) BGB offered him the installation of the abovementioned engine parts free of charge together with a voucher over EUR 500.

    The claim for the repayment of the buying price versus the restitution of the camper was essentially upheld by the Regional Court, except the claimed interest which was not matched with the restitution of the camper.
  • Legal issue
    The Higher Regional court has rejected the defendant’s appeal for the most part.

    The plaintiff is entitled to demand the unwinding of the contract of sale concluded between the parties under §§ 437 no. 2, 323, 346(1) and (2) BGB. The mobile home in dispute was defective upon delivery. The objection of disproportionality raised by the defendant is without cause and in addition has been raised too late. Additionally, the plaintiff is entitled to damages under §§ 437 no. 3, 280(1) and (3), 281 BGB, since the defendant is answerable for not having delivered a new mobile home comparable with the old one before the expiration of the deadline.

    The plaintiff was entitled to the removal of the defect when she set the defendant a one-month-deadline on 1 September 2004. At this time, the plaintiff had not waived her right to demand the replacement of the car, although the respondent had already offered the removal of the defect by replacement of certain engine parts, which the plaintiff had rejected. Although the seller is generally entitled to determine the extensiveness of the removal of the defect, the buyer’s right to chose between replacement and repair continues to exist, as long as the repair has not been begun. This was the case here.

    The replacement of the camper demanded by the plaintiff is not disproportionate in the terms of § 439(3) BGB. Whether the replacement is disproportionate or not can only be established by comparing its costs with the value of the subject matter of the sale for the buyer. According to § 439(3)(2) BGB this comparison is to be made under special consideration of the value of the good purchased without the defect, the significance of the defect and the question whether the alternative remedy could be completed without significant inconvenience to the consumer.

    The defect in question was significant. The shrinkage cavity in the engine block caused the necessity to constantly monitor the engine’s oil consumption. In the light of the fact that the camper in dispute here was a new vehicle (with a one-day-registration) the senate because of the incurred loss in value deems it unacceptable for the buyer to settle for a mere replacement of the engine. As far as the defendant claims that a repair would only cost EUR 1.115 and v.a.t., she omits the costs for the new engine parts.
    According to the conviction of this senate, the regional court has rightly held that the exception of disproportionality was barred to defendant at the time it was raised, because it was to late. The defendant did not raise the exception before the expiration of the deadline, which would have been necessary here.

    The Regional Court’s legal opinion is backed by the wording of the relevant provisions: According to them, the seller can refuse the remedy for the removal of the defect chosen by the buyer if it is disproportionate. However, both replacement and repair are impossible as soon as the buyer has validly declared the rescission of the contract because from this moment the contract of sale has been transformed into two mutual obligations to unwind the contract. In addition, it is to be noted that under § 439(3)(3) BGB the second remedy remains to the buyer if the seller has rejected the first remedy because of disproportionality. However, this second remedy is barred to the buyer as soon as he has validly declared the rescission of the contract.
  • Decision

    Full text: Full text

  • Related Cases

    No results available

  • Legal Literature

    No results available

  • Result