References without law book default to BGB.

Case - Defective Webcam

Facts

Freddy (F) buys a laptop from Marcus (M).

After F returns home, he recognizes that the laptop’s webcam does not work.

What rights does F have? (Focus on the right to demand cure).

Solution

Slides Solution

• Issue: Can F demand cure from M in line with §§ 437 No. 1, 439 I BGB?
• Rule: For this claim, the requirements of § 437 BGB must be fulfilled: (1) Sale of goods contract, (2) Material defect, (3) Material defect existed when risk passed, (4) No exclusion of buyer’s rights.
• Application:
  • 1. Sale of goods contract: → (+), sale of goods contract (§ 433 BGB).
  • 2. Material defect (§ 434 BGB):
    • Subjective requirements (§ 434 II BGB)? → (-), no agreed quality etc.
    • Objective requirements (§ 434 III BGB)? → (+). A faulty webcam is unusual for laptops (No. 1), and the buyer may expect the webcam to be working (No. 2).
  • 3. Existence of material defect when risk passed (§ 446 BGB):
    • When did the risk pass? → When the laptop was handed over.
    • Did the material defect already exist then? → (+), the webcam was already defective.
  • 4. No exclusion of buyer’s rights:
    • § 442 BGB (Knowledge of the buyer)? → (-), F did not know about the defect.
    • § 444 BGB (Exclusion of liability)? → (-), no such agreement.
• Conclusion: F has the right to demand cure from M in line with §§ 437 No. 1, 439 I BGB. (Other buyer’s rights may also apply. In this case, we just focus on cure.)

Write-Up

Issue: Can F demand cure (Nacherfüllung) from M under §§ 437 No. 1, 439 I BGB?

Rule: To claim cure, the prerequisites of § 437 BGB must be fulfilled: a valid sales contract, a material defect existing at the time the risk passed, and no exclusion of rights.

Application:
1. Contract: F and M concluded a valid sales contract (§ 433 BGB) for the laptop.

2. Material Defect (§ 434 BGB): The item must be free from material defects. There was no specific subjective agreement on the condition of the webcam (§ 434 II BGB). However, under the objective requirements (§ 434 III BGB), a good must be suitable for normal use and have a quality customary for things of the same kind that the buyer can reasonably expect. Laptops customarily come with functioning webcams, and buyers reasonably expect them to work. Therefore, the broken webcam constitutes a material defect.

3. Risk Passing (§ 446 BGB): The defect must have existed at the time the risk passed to the buyer, which generally occurs upon handover of the good (§ 446 BGB). The webcam was already broken when M handed the laptop to F. Thus, the defect existed at the time of risk passing.

4. No Exclusion: The buyer’s rights are not excluded. F did not know about the defect at the time of purchase (§ 442 BGB), and there was no contractual exclusion of liability (§ 444 BGB).

Conclusion: F has a valid claim against M to demand cure under §§ 437 No. 1, 439 I BGB. He may choose between having the webcam repaired or receiving a replacement laptop.