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27/3/2012 at 4:05pm
Location: None Entered Outfit: None Entered
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Please can I ask for some advice?
We ordered a new stealth caravan from Dunster House in January for delivery at the end of February.
The dates slipped, to mid March, the end of March, the 5th April and have now been pushed back again. We are due to go away during the Easter Holidays and are now not going to have our new caravan in time. This is despite the salesman promising that we would and that in the unlikely event blah blah blah...., we would be entitled to a full refund.
The company are not willing to refund our deposit and cancel our order.
What should we do?
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28/3/2012 at 10:09am
Location: Keswick Outfit: Bailey
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Whilst I cannot comment on the practices of Stealth on delivery, it may be useful to set out some of the legals. First thing to appreciate is the nature of the contract that you have entered into. It is not the same kind of contract as you sign when buying a Bailey, Elddis, Lunar etc etc. Stealth operates differently to the normal caravan market place.
Stealth standard terms and conditions indicate that you are buying a “Bespoke” product. That is to say that they are only making the caravan because you have ordered it. It’s not like buying a standard product that is mass produced. Cancel your Stealth deal part way through production and they may just not finish the van and scrap it leaving you to pay for the work they have undertaken, subject to the terms of your contract and a whole raft of consumer law.
Despite the fact that this is stated to be “Bespoke” your contract for its purchase has incorporated into it a raft of implied terms (by law) such as the usual satisfactory quality, price, appearance, finish, freedom from minor defects, safety, durability and fitness for purposes etc.
Notice I have not included time for delivery in that list. Whilst the law generally requires delivery to be within a "reasonable" timeframe, to focus on that legality at this stage may be misleading without knowledge of the actual cocntract terms. Four months may be reasonable for all I know. Further, I don’t know what caveats are included in your contract as regards time (I guess there will be some enabling Stealth to slip that delivery date) but any such clauses have to stand the test of The Unfair Terms in Consumer Contracts Regulations. If they are deemed to be unfair then Stealth cannot rely on them. E.g the standard contract may say that they can deliver the van at any time up to five years hence. Clearly unfair as that is not a "reasonable time". So look at the contract and see just what it says about delivery. Perhaps come back and quote the clause.
These Unfair Terms in Consumer Contracts Regulations only assist you if your contract was not individually negotiated. If you signed the Stealth standard form of contract then it was not individually negotiated. If you changed some of their standard terms and conditions then you may have an individually negotiated contract for which the Regs do not offer you any help. Broadly, however, just because a single term may have been individually negotiated that does not exempt the remaining terms from having to meet the standards of the Regs So, you may have signed a standard contract but individually negotiated the delivery clause. If that delivery clause is, on the face of it, “unfair” you may be stuck with it because you negotiated it. You need to reflect upon that and maybe let us know just what happened during those contract discussions.
So, what is “unfair” and not binding on you under the Regs? A term is "unfair" where it causes significant imbalance between the parties to the detriment of the consumer in a way that is contrary to the requirement of good faith. That definition is complex!!! Here then comes into play, for example, just what you said to the Company about your desire to have the van in time for Easter Hols. If you said nothing then it is too late now to use their failure to deliver to a timetable you did not mention as evidence of “unfairness”.
In considering whether the term on delivery is unfair one factor that will be taken into account is whether the goods are sold or supplied to the special order of the consumer; As I understand it the van would not be built had you not ordered it. Thus delivery will be subject to many of the vagaries of construction some of which may be outside of Stealth’s control. E.g. supply of materials. So, if your contract has a delivery date but is expressed to be “Subject to” and followed by a list of factors it may be that it is reasonable for the delivery date to have been delayed. Your post does not indicate why there has been a delay so I can’t comment. At the end of the day, it’s not like buying a Ford when there are thousands stock piled at the depot.
Under the Regulations, it is for you to show that a term is unfair and not for Stealth to show that it is fair and, without knowledge of all of the facts, I am afraid that it is impossible to even give a steer, at this moment, as to whether you have any justified grievance or not, in law.
It may help your position if Stealth produced their standard form of contract late in your discussions, say, at the time you wanted to put pen to paper. By not giving you time to take the contract away to consider it, when buying this bespoke product, may be “unfair” by placing you in a weak position. This is not the be all and end all of the “unfairness” argument but may assist in evidencing it.
If you are to consider terminating the contract because no firm date can be given for its delivery just remember that it is a bespoke product. The contract will include damages clauses so that they can recover the costs they would not have incurred had you not agreed to let them start work on the van. Again subject to the Regs as to fairness
Losing your deposit may be one term. The Regs suggest two potentially unfair terms in relation to deposits:
1.a clause requiring any customer who fails to fulfil his obligation to pay a disproportionately high sum in compensation; or
2.a clause forfeiting a deposit or advance payment made by a consumer if the consumer cancels the contract, unless there is also a clause providing for the consumer to receive an equivalent amount if the contract is cancelled by the seller.
Interestingly it has been held that if a seller wishes to impose such a deposit clause then it is necessary, as a matter of fair dealing, for the compensation to be reciprocal should a seller fail to deliver the goods on time. Is there a clause in your contract giving you compensation for late delivery?
Upon reflection, you may wish to post back details of your contract discussions and the actual terms of your contract, if you want an idea of where you stand legally.
For everyone else, bear these factors in mind. If you want your van by a certain date and that is reasonably achievable, then make it clear. If you want compensation for late delivery, make it clear. If you want to be able to terminate without financial loss negotiate. Think about the contract Ts and Cs, read them, do they appear fair to you?
Phil
Post last edited on 28/03/2012 11:49:22
------------- If you're not on a fell your wasting your feet and for 2014 it's.......Feb Castleton Mar North Yors Moors; Apr Sutton on Sea; May Thirsk; Jun Clapham/Riverside (Lakes); July Wharfedale; August Crakehall; Sept Knaresborough; Oct Wirral Park/Clitheroe
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29/3/2012 at 3:32pm
Location: Keswick Outfit: Bailey
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"Time is not of the essence" and I guess that that is their standard wording which you have not altered. If that is the case then it has to meet the strict requirements of the Unfair Terms in Consumer Contracts Regulations for Stealth to rely on that to deny you the right to cancel and demand your deposit back.
When making a caravan an experienced manufacturer will know just how long it will take and should be able to give an indication of the delivery date. I think that you can forget what has been said verbally (although that is useful in any litigation) and just focus on what the contract says. If no indication has been given in the contract as to a delivery date then the contract is "at large" as we lawyers call it; that is to say they can deliver the van whever they like. That is unfair.
Regardless of what the contract says the law requires that goods should be delivered, if no date is fixed, within a reasonable time. A term in a contract which allows the supplier to fail to meet this requirement creates that imbalance in the contract that I mentioned in my earlier post. If no indication of delivery date has been given, just that it will be when they can, then there is a hint here that they offend the Regs. Thus they would not be able to rely on an endless delivery date. The effect is to allow the supplier to ignore the convenience of the customer.
If the wording is that the van will be delivered in, say, two months but "time is not of the essence", that means that they cannot be bound to that timetable. However, if they specify two months then that is an indication of what they consider to be a reasonable time period. As time is not yet "of the essence" to your contract then Stealth is quite correct when they say that you cannot cancel nor get your money back. That is how contract law operates.
On this basis, the buyer is entitled to bring matters to a head by making time of the essence by giving the supplier a further reasonable time to effect delivery and can then take action only if that date is missed e.g cancel the contract. May sound a bit long winded, Carolina, but that is how it works.
I would suggest that, as a first stage of such a process, if you wish, you write to Stealth and ask for a delivery date. Maybe throw into your letter the fact that the law requires them to have delivered the van within a reasonable period of time. (Perhaps check just how long it should take to build a van). Once they give you a date, you can then take a view as to whether you wish to move to the next stage of making time of the essence. If you move to the next stage you may feel inclined to set out your legal rights under the regs and that in your view they have failed to satisfy their legal obligations to deliver within a reasonable time. Indicate that if they fail to meet their new delivery date then you intend to make time of the essence of the contract.
You need to check the full wording of the delivery requirements set out in the contract (maybe even post on here) before seeking to make time of the essence.
Broadly, very broadly, based upon what you have posted, Stealth appears to be in breach of the Regs and, once time is of the essence then they either deliver or give you your deposit back.
Is the contract you have the one posted on the Stealth web site setting out their terms and conditions? Just would be interested to know if it is any different.
On a general note, in matters like this, handing over a deposit for someone to hold for a long time may be a worry and you may like to think of asking that the other side deposits the money with their bank in a joint account of the name of the seller and buyer. The Bank is then authorised to release the money to the buyer if the van has not been delivered on the contracted delivery date. If that arises the parties can agree a new delivery date, if they wish, and set up the same account again, or agree that the contract is at an end. In this way, the seller can use the deposit as security for cash flow with its Bank without actually getting its hands on it and the buyer remains in control of the deal. You would probably get a much more realistic delivery date from the seller as well as it would want to make sure it got that money!!! They can give you some waffle about delivery when trying to sell!!!
What happens if the seller goes into Administration? Well, if you set up the Banking arrangement I have referred to the money does not belong to the seller so forms no part of the Administration. It still belongs to the buyer. On the other hand, if you hand over a deposit to the seller that money belongs to the seller and is put into the company pot to pay secured creditors in an Administration. The buyer is an unsecured creditor and puts his name on the list of creditors and hopes for the best. You can actually lose that deposit in such cases. A couple of grand to a seller, or to the likes of KPMG, is peanuts, but to those who have worked hard to save such funds it's a considerable sum. Yet what do we do when parting with it? We cross our fingers. Funny aren't we?
Not in any way suggesting that Stealth may be going this way, just talking principles that folk may like to investigate if they are parting with substantial sums but having to wait ages to get their hands on the goods.
Phil
------------- If you're not on a fell your wasting your feet and for 2014 it's.......Feb Castleton Mar North Yors Moors; Apr Sutton on Sea; May Thirsk; Jun Clapham/Riverside (Lakes); July Wharfedale; August Crakehall; Sept Knaresborough; Oct Wirral Park/Clitheroe
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