From Purchase to Litigation: Unraveling the Legal Aspects of Buying Used Cars with Hidden Defects
Buying a used car can save a lot of overhead, but it also often comes with certain legal risks. One of them is the presence of hidden flaws (defects) that are not discovered during the sale, but which the buyer later discovers. In this legal article, we will answer the question of what our legal options are in the event of such a scenario.
According to Art. 193 of the Bulgarian Law of obligations and contracts, the seller is liable if the sold item has defects that significantly reduce its price or its suitability for ordinary use or for the use provided for in the contract. The seller is not responsible for defects that were known to the buyer at the time of sale. The seller is also liable when he was not aware of the defect.
After accepting the item, the buyer must inspect it during the time that is usually necessary for this in such cases, and immediately notify the seller of the observed defects. If he does not do this, the item is considered approved, unless defects are later discovered that could not have been noticed by ordinary inspection. In the latter case, the buyer's rights are preserved if he immediately notifies the seller of the discovered defect.
Art. 195 of the Bulgarian Law of obligations and contracts states that in cases where the seller is responsible according to Art. 193, the buyer can return the thing and claim back the price together with the costs of the sale, keep the car and ask for a price reduction or remove the defects at the seller's expense. He can also ask for compensation for damages according to the general rules regarding non-fulfillment of the obligations.
BUYING FROM A CAR DEALERSHIP - A USED CAR DEALER
When we buy a used car from a dealer, the law gives us additional rights. The concluded contract can be qualified as consumer`s contract when the buyer is not professionally engaged in the purchase of cars.
When the buyer has the status of user, they should also find the special ones, respectively, in the Bulgarian Consumer protection act, the permissions given in Directive 1999/44/EC of the European Parliament and of the Council of May 25, 1999.
Article 5(3) of Directive 1999/44 must be interpreted in the sense that the rule that the lack of conformity of the goods (in this case a car) is considered to have already existed at the time of delivery of the goods applies if the consumer proves, that the goods sold do not conform to the contract and that the non-conformity in question has been established, i.e. its presence was actually revealed within six months after the delivery of the goods . The user is not required to prove either the reason for the discrepancy or that the seller caused it.
The seller's liability can only be excluded if he duly proves that the said lack of conformity is due to or arises from a circumstance that occurred after the delivery of the goods.
CASE FOR LATENT DEFECTS
In order to successfully conduct the defense of the claim with a legal basis, Art. 195, para. 1, pr. 3 cf. art. 193, para. 1 Bulgarian Law of obligations and contracts, the plaintiff should establish in the case in the conditions of complete and main proof:
1) the existence of a contractual relationship between the parties arising from a contract for the sale of motor vehicles;
2) his own execution of contract, namely that he paid the defendant the sales price; the presence of defects in the item;
3) the defects significantly reduce its price or its suitability for ordinary use or for the use provided for in the contract; the defects were not known to the buyer at the time of sale;
4) the seller has been notified immediately by the buyer of the observed defects, after the latter has examined the item during the time that is usually necessary for this in such cases.
The seller's obligation to sell an item unencumbered by defects corresponds to the buyer's right to choose one of the options provided by Art. 195, para. 1 Bulgarian Law of obligations and contracts:
1) to return the item and claim back the price together with the costs of the sale;
2) to keep the item and ask for a price reduction;
3) to remove the defects at the expense of the seller.
The claim under the third proposition enables the buyer to claim the costs necessary to remedy the defects. It is an expression of the general rule of Art. 80, para. 1 Bulgarian Law of obligations and contracts that the creditor may ask to be allowed to perform an action at the expense of the debtor. With the selection of the claim under Art. 195, para. 1, pr. 3 of the Bulgarian Law of obligations and contracts, the buyer aims for the exact performance of the contract. It is aimed at translating the agreed sale price in accordance with the actual value of the item, but not by reducing its price, which is also allowed by law, but by removing the defects with which it is burdened, at the expense of the seller (see decision No. 55/22.04.2010, issued according to case No. 817/2009 by Bulgarian Supreme Court).
