Topic > Yachting Pier Case Study - 1287

Sunny Yacht Club is the owner who commissioned Ah Seng Pte Ltd to build a salt water yachting jetty. As a contractor, Ah Seng Pte Ltd obtained the material from its supplier, Bah Kwa Pte Ltd. Ah Seng Pte Ltd decided to purchase a specific type of cement after reading the specification sheet from the manufacturer, Chiong Hay Pte Ltd, and subsequently confirmed by the commercial director of Chiong Hay Pte Ltd that the technical information provided was correct. Two years after the works were completed, the pier began to develop cracks.Sunny v Ah Seng Pte Ltd: According to SOGA s13 the implied term fits the description well. It describes goods by their function, nature or purpose, but the quality of the good has no bearing on its identification. SOGA s14(2) implies that the quality of the goods is satisfactory and reasonably fit for use for its purposes or functions. SOGA s14(3) implied fitness for purpose. Hereby, Sunny Yacht Club must make it known to Ah Seng Pte Ltd that the goods delivered must be fit for their intended purpose. It is the negligence of Ah Seng Pte Ltd to have failed to ensure that the concrete used in the construction of the salt water yacht dock was capable of resisting salt water and would not corrode or become damaged due to continued exposure to salt water. Defects or damage that occurred at the dock were not highlighted or made specifically known to Sunny Yacht Club at the time of contact. As a result, Ah Seng Pte Ltd breached SOGA s14(2). Due to this negligence on the part of Ah Seng Pte Ltd, Sunny Club Yacht is entitled to take action under the Commercial Law on SOGA s13, s14(2) and s14(3). Sunny v Bah Kwa Pte Ltd and Sunny v Chiong Hay Pte Ltd : As per the color contract law......middle of the paper......the contract where the customer is given one year liability period for defects for the finished saltwater dock. Before starting the cement work, Ah Seng Pte Ltd should have consulted the Sunny Yacht Club on the quality of the cement and asked them for approval and acceptance of the product. If this were done, no liability for damages could be claimed as Sunny Club Yacht accepted the concrete before any work was carried out. If all of the above has not been documented in the contract, it is best for Ah Seng Pte Ltd to replace or repair the cracks that have developed and put them into a contract for a certain period of defect liability after the rectified work has been completed. If Ah Seng Pte Ltd fails to rectify the cracks on the pier, Sunny Yacht Club is entitled to take legal action against them for damages under SOGA Commercial Law s13, s14(2), s14(3) and trot of negligence.