Timing of the Defects Liability Period
Group: Nguyễn Thị Oanh
Nguyễn Duy Linh
Mai Quý Thiên
Bạn Lào
Bạn Lào



1. The Problem

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When is the time of liability for starting ?
When the buyer find the defects, how long time is the buyer notify the exporter?
How long time is the exporter has to correct the defect?
If the exporter fails to make good the defect, how long time is the buyer can begin a legal
action?


2a.The Defects liability period
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First is starting point of defects liability period. while the seller want early date and start timing of the Defects
Liability, the buyer wants a much later date, perhaps a successful acceptance test.
Second is INTERRUPTION OF THE DEFECTS LIABILITY PERIOD

2a.The Defects liability period
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Forexample:

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To be fair we have the following typical terms:
The Defects Liability Period shall be extended by a period equal to the period during which the Goods cannot be used by reason of any
defect, but not so as to extend the Defects Liability Period for more than twenty-four months from the date of first delivery of the
Goods repaired or replaced under this provision


2a.The Defects liability period
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Less wide accepted is clause that buyer’s often try to slip into a contract – replacement parts trigger a new warranty period:
Any Supplies funished by way of replacement under warrantly shall be subject to provisions of this Clause to the same extent as Supplies initially
accepted by the Contractor for full further period of warranty.

The danger here is that the provision creates a so-called “eternal warranty” –
an endlessly renewed liability for defects:


2a.The Defects liability period

Exporters normally reject the clause altogether, if rejection is impossible, they can and should break the chain warranty
with cut-off clause:
Any parts replaced under this warranty shall be subject to the provisions of this clause for a fll further period of warranty; however,

the total warranty period shall in no case exceed three years.


2b. The Notification period
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the buyer must notify the exporter if a defect occurs .
In practice, most of contracts do not put precise time limit on the Notification Period.

A typical wording:
Notice of Defects
The buyer shall notify the Seller of defects without undue delay.

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In case, a problem arises, the judge sets a fair period for undue delay
Example: The UCC says:

What is a reasonable time for taking any action depends on the nature, purpose and circumstances of such action.
Any action is taken “seasonably” when it is taken at or within the time agreed or, if no time is agreed, at or within a reasonable time.


2c. Rectification Period
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The Rectification period is like to a guarantee period and the Seller usually has the obligation, and indeed the right, to remedy
defects appearing within this time.

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Making Good of Defects:
The Seller shall making good of the defect or damage as soon as practicable and at his own cost.
The making goof of defects without undue delay or within a reasonable time is a fair and normal contract requirement.

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The options for curing Defects:
Repair.
Allow the buyer to repair at exporter’s cost.
Replace(part or whole item).
Reduce the price.
Return the goods and refund the price.


2d. The Legal Action period
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If the exporter has failed to repair under warranty and the buyer must start a legal action, how much time does the buyer have to
begin proceedings?

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This "legal action period" differs under applicable laws.

In Germany, For example, the BGB defines a legal action period equal to and concurrent with the defects. liability period. This is harsh .


2d. The Legal Action period
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In another common Continental law pattern, the legal action period begins when the buyer notifies the exporter of the defect. The
legal action period is then the same length as the defects liability period. This is fairer.


2d. The Legal Action period
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In the United States: the UCC sets up a four-year legal action period; the parties to a contract may shorten this period
(minimally to I year), but they may not lengthen it.

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In England the normal period is six years from the date of the cause of action.
The variations are many: within one country, the legal action period varies from one type of contract to another or even
from one type of duty to another.

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In practice, contracts rarely regulate the legal action period, leaving the matter to the applicable law. If you foresee a
problem, take legal advice.


3. SUMMARY
1. The defects liability provision states the length of the defects liability period and its starting point.
2. It regulates the period during which the buyer must notify the exporter about defects.
3. It regulates the amount of time the exporter has to cure defects.
4. . It seldom regulates the legal action period, the applicable law normally fixed the legal action period.


Vocabulary


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Seasonably: kịp thời
Civil law: luật dân sự
Harsh: khắt khe
Undue delay: chậm trễ 1 cách quá đáng


Practice

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Question
1. How many Timing problems are there in The Defects Liability Period?
A. One
B. Two
C. Three
D. Four


Practice
ANSWER: D. Four

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The Defect Liability Period
The Notification Period
The Rectification Period
The Legal Action Period


Practice

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Question

2. How many options are there for curing Defects?
A. Three
B. Four
C. Five
D. Six


Practice
ANSWER: C. Five

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Repair.
Allow the buyer to repair at exporter’s cost.
Replace(part or whole item).
Reduce the price.
Return the goods and refund the price.


Practice
Translate to Vietnamese

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In the event of a defect coming to light and being notified to the Seller, the Seller shall, at
his discretion and without undue dalay, repair or replace the defective item at his own risk
and cost.


Practice
Trường hợp sai sót được tìm thấy và thông báo đến người bán, người bán phải ngay lập tức
lựa chọn phương án sửa chữa hoặc thay thế hàng hóa sai sót, chịu mọi rủi ro và chi phí.


Practice

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The Defects Liability Period shall be extended by a period equal to the period during which
the Goods cannot be used by reason of any defect, but not so as to extend the Defects
Liability Period for more than twenty-four months from the date of first delivery of the
Goods repaired or replaced under this.



Practice

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Thời hạn trách nhiệm pháp lý về sai sót sẽ được gia hạn thêm một khoảng thời gian bằng
với thời gian mà hàng hóa không thể sử dụng do những sai sót đó gây ra, nhưng không gia
hạn quá 24 tháng kể từ ngày giao hàng đầu tiên của số hàng hóa được sửa chữa hay thay
thế theo Điều khoản này.


Practice
Translate to English

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Nếu một bên gây ra thiệt hại cho bên kia, bên chịu thiệt hại có quyền được bồi thường tất cả các chi phí cho thiệt hại từ
bên gây ra thiệt hại. Các chi phí thiệt hại được bồi thường bao gồm các thiệt hại trực tiếp, vốn là những thiệt hại là kết
quả trực tiếp từ những gì đã xảy ra, chẳng hạn như chi phí y tế hay thiệt hại tài sản, và các thiệt hại gián tiếp. Thiệt hại
gián tiếp là những thiệt hại không trực tiếp gây ra bởi bên kia nhưng bên bị thiệt hại vẫn phải chịu.


Practice
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If one party to this contract causes damages to the other party, the injured party has the right to recover the cost of the
damages from the party causing the injury. Damage costs that could be recovered include direct damages, which are
damages that are a direct result of what happened, like medical costs or property damage, and indirect damages.
Indirect damages are those that are not directly caused by the other party but that are incurred because the party was

injured.