JT Law Sydney offices (in 2010)
According to the article 513 of the Greek Civil Code, by executing the contract of sale the seller undertakes the obligation to transfer the ownership of the object or right that constitute the subject matter of the sale, and the purchaser undertakes the obligation to pay the agreed price. The seller is under an obligation to transfer the subject matter of the sale free from any rights belonging to any third party (legal defect). The seller is not responsible for legal defects existing at the time of the sale, if the purchaser had knowledge thereof. However, the seller shall be responsible for existing mortgages or prenotices of mortgage or attachments or pledges, even if the purchaser had knowledge of their existence.
The seller is also under an obligation to deliver the object that is being sold to the purchaser free from any actual defects, which nullify or substantially diminish the value or usefulness of the thing. The object of the sale has actual defects which nullify or substantially diminish its value or its usefulness when: a) the object does not correspond to the representations made by the seller regarding its description; or b) the object is not suitable for the purpose for which it is being purchased; or c) the object cannot serve its intended purpose, as that relates to objects belonging to the same class; or d) the object does not meet the quality or performance that the purchaser demands from objects of the same class.
The seller shall not be liable in respect to actual defects which were known to the purchaser at the time of the closing of the sale. In the cases where the seller is liable for an actual defect or the lack of an agreed quality, the purchaser shall have the right to rescind from the sale contract or demand a reduction of the sale price or the repair or replacement of the sale object with another, suitable for the use and purpose intended. The purchaser can always demand compensation for the seller’s failure to perform under the contract.
If the purchaser has accepted the object without reservations and with knowledge of the defect or the lack of the agreed quality, he shall be deemed to have accepted the thing as is. Upon the revocation of the sale, the purchaser is under an obligation to return the object, free from any burden that he may have caused as well as the proceeds he acquired therefrom. The seller must return the price with interest, the sale expenses, as well as the disbursements incurred by the purchaser in respect to the object. The purchaser has the right to request alternatively the revocation of the sale or a reduction of the sale price or the replacement of the sale object, even if the object has been destroyed or has deteriorated due to the defect.
When more than one item constitute the sale object, if only some of them are defective or lack an agreed quality, the above rights apply only in regards to the limited number of defective items. However, if the intention of the parties has been that the items are being sold in bulk or as a whole, and the defective or deficient items cannot be separated from the non-defective without one of the parties being prejudiced, the revocation will apply to the totality of the items.