SOGA purchasing Vans from company
Discussion
We are in final contract negotiations and the company we are contracting to have asked us as part of the TUPE process to buy their drivers vans off them.
Happy to do this but I think their valuation is a little high. But still cheaper than us trying to source 7 vans in the next few weeks.
If we are purchasing these vans from a PLC will they be covered under SOGA or is that only for registered traders
Matt
Happy to do this but I think their valuation is a little high. But still cheaper than us trying to source 7 vans in the next few weeks.
If we are purchasing these vans from a PLC will they be covered under SOGA or is that only for registered traders
Matt
matty g said:
We are in final contract negotiations and the company we are contracting to have asked us as part of the TUPE process to buy their drivers vans off them.
Happy to do this but I think their valuation is a little high. But still cheaper than us trying to source 7 vans in the next few weeks.
If we are purchasing these vans from a PLC will they be covered under SOGA or is that only for registered traders
Matt
My interpretation of SOGA(1979) differs somewhat from MustangGT’s. Happy to do this but I think their valuation is a little high. But still cheaper than us trying to source 7 vans in the next few weeks.
If we are purchasing these vans from a PLC will they be covered under SOGA or is that only for registered traders
Matt
SOGA(1979) does make provision for B2B transactions but it’s very limited in its scope with four hinges pertaining. The two major ones in a deal like this are;
1. The seller must hold legal title to sell the vehicle - in essence, they must be their’s to sell. Free from finance etc.
2. The vehicles must be accurately described.
Number one is easily sorted as part of due diligence. Number two can create pitfalls. If you think you’ve bought a White Luton Transit that’s only done 48k and it turns out to be red Vauxhall Combo on 157k then you’d have litigational redress under the SOGA(1979) for misdescription.
However, the SOGA(1979) offers zero protection on used vehicles within the B2B arena. So if you buy Bob’s van on the Friday and it breaks down on the Monday - clutch goes for example - leaving you with a £3k bill - then you’ll have no litigational redress.
With B2B it s down to the contract between the two firms - so get whatever terms you want put into the contract to buy the vehicles. Of course the seller may not agree to everything so then it s a matter of negotiation.
The SOGA would really only be useful if you were buying from a dealer in the normal way.
The SOGA would really only be useful if you were buying from a dealer in the normal way.
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