Case Study Of Yachting Pier

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Recommended: Terms of a contract

Sunny Yacht Club is the owner that engage Ah Seng Pte Ltd to build a salt water yachting pier. As the contractor, Ah Seng Pte Ltd has obtain his material from his supplier, Bah Kwa Pte Ltd. Ah Seng Pte Ltd has decided to purchase a specific type of cement after reading the specification sheet from the manufacturer, Chiong Hay Pte Ltd, it later confirmed from Chiong Hay Pte Ltd commercial’s manager that the technical information furnish was correct. Two years later after the completion of the work, the pier began to have cracks.

Sunny v Ah Seng Pte Ltd: According to SOGA s13 the implied term is good correspond with the description. It describe the goods as per its function, nature or purpose but the quality of the good is in no relation of its identification. SOGA s14(2) implied on the quality of the goods to a satisfactory and reasonably fit to use for its purposes or functions. SOGA s14(3) implied to its fitness of its purpose. With this, Sunny Yacht Club has to make known to Ah Seng Pte Ltd of its goods delivered shall and must be fit for the purposes intended. It is negligence of Ah Seng Pte Ltd, failing to ensure that the cement used for the building of the salt water yachting pier was able to withstand salt water and will not corrode or damages by continual exposure to the salt water. The defects or damages that happen to the pier was not highlighted or make known specifically to Sunny Yacht Club during the point contact was made. As a result, Ah Seng Pte Ltd has breach SOGA s14(2). Due to this negligence by Ah Seng Pte Ltd, Sunny Club Yacht has the right 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 understood in the contract law on col...

... middle of paper ...

...the contract where one year of defect liability period is given to the customer for the finish salt water pier. Before the start of work with the cement, Ah Seng Pte Ltd should have consulted Sunny Yacht Club on the quality of the cement and seek approval and acceptance of product from them. If this was done, no liability of the damages could be claim as Sunny Club Yacht has accepted the cement before any work was carried out. If all of the above was not documented in the contract, it is best Ah Seng Pte Ltd replace or repair the cracks which was developed and put it in a contract for a certain defect liability period after the completion of rectified work.
If Ah Seng Pte Ltd fail to rectify the cracks on the pier, Sunny Yacht club has the right to take legal action against them for damages under the commercial law of SOGA s13, s14(2), s14(3) and trot of negligence.

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