Article: "Absolute Warranty Of Fitness For Purpose"- Just Make Sure You Identify The Purpose!

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 ...

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