Western Australian Consolidated Acts

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FAIR TRADING ACT 1987 - SECT 41

41 .         Rescission of contracts (TPA s. 75A)

        (1)         Where — 

            (a)         a supplier supplies goods to a consumer in the course of a business; and

            (b)         there is a breach of a condition that is, by virtue of a provision of this Part, implied in the contract for the supply of the goods,

                the consumer is, subject to this section, entitled to rescind the contract by — 

            (c)         causing to be served on the supplier a notice in writing signed by him giving particulars of the breach; or

            (d)         causing the goods to be returned to the supplier and giving to the supplier, either orally or in writing, particulars of the breach.

        (2)         Where a consumer purports to rescind under this section a contract for the supply of goods by a supplier, the purported rescission does not have any effect if — 

            (a)         the notice is not served or the goods are not returned within a reasonable time after the consumer has had a reasonable opportunity of inspecting the goods;

            (b)         in the case of the rescission effected by service of a notice, after the delivery of the goods to the consumer but before the notice is served — 

                  (i)         the goods were disposed of by the consumer, were lost, or were destroyed otherwise than by reason of a defect in the goods;

                  (ii)         the consumer caused the goods to become unmerchantable or failed to take reasonable steps to prevent the goods from becoming unmerchantable; or

                  (iii)         the goods were damaged by abnormal use;

                or

            (c)         in the case of a rescission effected by return of the goods, while the goods were in the possession of the consumer — 

                  (i)         the consumer caused the goods to become unmerchantable or failed to take reasonable steps to prevent the goods from becoming unmerchantable; or

                  (ii)         the goods were damaged by abnormal use.

        (3)         Where a contract for the supply of goods to a consumer has been rescinded in accordance with this section — 

            (a)         if the property in the goods had passed to the consumer before the notice of rescission was served on, or the goods were returned to, the supplier — the property in the goods re-vests in the supplier upon the service of the notice or the return of the goods; and

            (b)         the consumer may recover from the supplier, as a debt, the amount or value of any consideration paid or provided by him for the goods.

        (4)         The right of rescission conferred by this section is in addition to, and not in derogation of, any other right or remedy under this Act or any other written law or rule of law.



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