The High Civil Court of Appeal has annulled a car sale contract and ordered the seller to pay BD9,500 to the buyer in exchange for the return of the vehicle, after it was established that it had serious hidden defects that were not disclosed at the time of sale, despite the buyer having used the car for three years.
The court found that the defects had been deliberately concealed.
The case arose when the buyer purchased the vehicle for BD12,500 after the seller and showroom employee assured her that it was a Gulf-specification vehicle, in good condition and free from accidents.
About three years later, when the buyer decided to replace the car, she had it inspected. The inspection revealed that the American-specification vehicle had previously been involved in a major accident and that some of its parts had been repaired using non-original, used components.
The court relied on an expert report confirming that the vehicle had sustained extensive damage to its front and sides and that the repairs carried out were inadequate. The report also assessed the vehicle’s value at the time of purchase at BD9,300, compared with the BD12,500 the buyer had paid.
The court ruled that the defects were hidden and could not have been detected through a normal inspection. It further found that the seller had breached his legal obligation to disclose the true condition of the vehicle and its defects, contrary to the principles of good faith and fair dealing.
Accordingly, the court annulled the contract and ordered the parties to be restored to their pre-sale positions, with the buyer receiving a deduction of BD3,000 from the amount paid to her in consideration of her use of the vehicle during the three-year period.
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