Also known as: substantial change of condition · substantially changed condition · material change in circumstances
Written by attorneys — see sources below.
2 senses
A physical alteration to goods that is unrelated to their inherent defects. Such a change bars a buyer from revoking acceptance once the buyer has discovered or should have discovered a nonconformity.
A physical alteration to goods that is unrelated to their inherent defects. Such a change bars a buyer from revoking acceptance once the buyer has discovered or should have discovered a nonconformity.
A material shift in the parties' circumstances after an agreement is signed. Enforcement of a term may be refused when the shift would produce substantial hardship.
A material shift in the parties' circumstances after an agreement is signed. Enforcement of a term may be refused when the shift would produce substantial hardship.
Each sense below has its own examples, sources, and questions.
Briar Appliances accepted electric motors and installed thousands into finished blenders. Months later it discovered an internal defect, disassembled and stress-tested remaining units, then attempted revocation. The installation and testing constituted a substantial change in condition unrelated to the defect itself, so revocation was ineffective.
3 common questions
Revocation is barred once the goods undergo a substantial change in condition not caused by their own defects. The buyer must also act within a reasonable time after discovery and give notice.
Supporting sources
No. Use that is limited and necessary to discover or confirm a latent defect does not bar revocation. Extensive commercial exploitation or buyer-initiated alterations after discovery do bar it.
Supporting sources
No. Only changes unrelated to the defects themselves bar revocation. Deterioration or damage flowing directly from the nonconformity does not count as a disqualifying change.
Supporting sources
Solomon Silver and Sylvia Santos signed a premarital agreement waiving spousal support. Years later Solomon suffered a permanent disability that eliminated his earning capacity while Sylvia's income remained modest. The material change in circumstances after signing would cause substantial hardship if the waiver were enforced.
1 common questions
A court may refuse enforcement if the term was unconscionable at signing or if enforcement would cause substantial hardship because of a material change in circumstances arising after signing.
Supporting sources
…must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it. “(C) A buyer who so revokes has the same rights and duties with regard…