Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32P

Discharge or rescission of contract of supply of goods

32P. Discharge or rescission of contract of supply of goods



(1) This section applies if a purchaser-

   (a)  discharges a contract of supply of goods by reason of repudiation or
        breach of condition by the supplier; or

   (b)  in accordance with section 32OA(1) rescinds a contract of supply of
        goods after an innocent misrepresentation is made.

(2) If the goods have been delivered to the purchaser and have not been
returned to the supplier, the purchaser must return the goods to the supplier
or permit the supplier to take possession of the goods.

(3) The purchaser is liable to the supplier for loss or damage caused to the
goods-

   (a)  by the purchaser wilfully or by the purchaser's negligence while the
        goods are in the purchaser's possession during a period of 21 days
        after discharging or rescinding the contract; and

   (b)  by the purchaser wilfully while the goods are in the purchaser's
        possession after the expiration of a period of 21 days after
        discharging or rescinding the contract.

(4) If the property in the goods passed to the purchaser before the discharge
or the rescission, the property re-vests in the supplier.

(5) The supplier is liable to the purchaser for money paid and for the value
of any other consideration paid or provided under the contract by the
purchaser to the supplier.

(6) If-

   (a)  the purchaser used the goods before the discharge or rescission; and

   (b)  the supplier acted honestly and reasonably in supplying the goods-

the court may, if it is satisfied that, in all the circumstances, it is just
and convenient to do so, allow the supplier to recover from the purchaser an
amount equal to the whole or any part of the fair value to the purchaser of
the purchaser's use of the goods.