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#contract #law #terms
The case of Balmoral Group Ltd v Borealis Ltd [2006] EWHC 1900 (Comm) helps to illustrate when the SGA 1979 s 14(3) may be relied upon. In this case Borealis supplied a polymer to Balmoral for use in the making of oil tanks. The material supplied was not defective or incorrectly manufactured; it was suitable for its general purpose. No breach of s 14(2) could therefore be established. The question for the court was whether it was suitable for Balmoral's particular purpose, which was made known to Borealis, of constructing above ground static tanks to be used for storing oil over long periods. Mr Justice Clarke stated that this was a matter falling within the reach of s 14(3).
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