|
|
Article: "Absolute Warranty Of Fitness For Purpose"- Just Make Sure You Identify The Purpose!
- Article from:
- Mondaq Business Briefing
- Article date:
- April 8, 2008
CopyrightCOPYRIGHT 2008 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Key Points In a standard fitness for purpose warranty, the "purpose" will be limited to that which is "likely to be encountered" on the site.
If a principal wants the fitness for purpose warranty to extend to conditions which it's highly unlikely it will encounter, the contract must expressly provide for it.
Justice Hargrave's decision in Barton v Stiff [2006] VSC 307 stands as a reminder that the absolute warranty for fitness for purpose has limitations - it only relates to the "purpose" as properly identified. Without a clause expressly providing that the contractor is to bear all risk of failure of materials due to adverse site conditions, a ...