The right to reject for short delivery and termination

Abstract

Purpose

If a seller fails to deliver the correct quantity, the buyer may reject the goods in accordance with the Sale of Goods Act 1979, section 30(1). The nature of this right to reject is unclear, and whether breach by short delivery will suffice to terminate the contract is also unclear. The purpose of this paper is to clarify this area of law.

Design/methodology/approach

The focus is on the combined case‐law and academic commentary on the topic of short delivery, and the broader issue of termination.

Findings

The paper suggests that breach by short delivery does terminate the contract. It suggests that the right to cure cannot provide an entirely satisfactory response for victims of short delivery. The paper also proposes a reform of the Sale of Goods Act 1979 to take this into account.

Research limitations/implications

This research mainly focused on the current legal position. Further research on the historical development of the rules on short delivery, which were crystallised in the Sale of Goods Act 1893, will provide valuable insights into this area of law.

Practical implications

The proposal for reform could have a practical benefit in terms of protecting buyers from the danger of short delivery, by providing them with a more secure remedy than what appears to be currently available.

Originality/value

To the extent of the author's knowledge, this is the first dedicated analysis of short delivery in the literature.

Citation

Thomas, S. (2012), "The right to reject for short delivery and termination", Journal of International Trade Law and Policy, Vol. 11 No. 1, pp. 44-64. https://doi.org/10.1108/14770021211210687