Auction Law in Sweden
The legal information presented in these pages offers some insight into the law in different jurisdictions but should not be acted upon without having consulted your own legal advisor.
In Sweden, a dealer who purchases an antique at auction based on a misdescription may have the right to rescind the purchase under certain conditions, as outlined in the Swedish Sale of Goods Act (Köplagen, 1990:931).
🏛️ Legal Framework: Swedish Sale of Goods Act
According to Chapter 39 of the Sale of Goods Act, a buyer may cancel the purchase if:
- The defect (misdescription) is material to the buyer.
- The seller knew or should have known about the defect.
- The buyer notifies the seller within a reasonable time after discovering the defect.
However, the buyer cannot cancel if:
- The seller has acted in good faith or without gross negligence.
- The buyer has affirmed the contract by, for example, reselling the item or failing to act promptly.
⚖️ Application to Auction Purchases
The law applies to both new and used goods, including those purchased at auctions. Dealers are expected to exercise due diligence, and auction houses are responsible for the accuracy of their descriptions. If an antique is misrepresented (e.g., described as 17th-century when it's a 19th-century reproduction), and the dealer can prove the misrepresentation was material and that the auction house was aware or should have been aware, the dealer may have grounds to rescind the purchase.
📌 Key Considerations
- Materiality: The misdescription must be significant enough to have influenced the dealer's decision to purchase.
- Knowledge: The auction house's awareness or negligence regarding the misdescription is crucial.
- Timely Action: The dealer must act promptly upon discovering the misdescription.
- Affirmation: Any actions that suggest acceptance of the purchase, such as reselling the item, may negate the right to rescind.
📝 Recommended Steps for Dealers
- Document the Misdescription: Gather evidence, such as auction catalogs, photographs, and expert opinions, to support the claim.
- Notify the Auction House: Inform the auction house in writing about the misdescription and intention to rescind.
- Seek Legal Advice: Consult with a Swedish legal professional specializing in contract law to assess the case and guide the process.
