Sunday, June 23, 2013

Reasonable fitness for purpose

Islander R.V. Sales & Rentals Ltd. v. Rice2013 NLCA 41 deals with reasonable fitness for purpose under the Sale of Goods Act (while a Newfoundland case the statute is similar throughout Canada):

[22]        In summary, a vendor has the obligation to provide goods reasonably fit for the intended purpose provided certain pre-conditions are satisfied: the purchaser, at least by implication, indicates the intended purpose for which the goods are being purchased and demonstrates reliance on the vendor's skill and judgment, the goods being those the vendor supplies in the ordinary course of business.  Where these pre-conditions are satisfied and the goods are not reasonably fit for the intended purpose, subject to special considerations, such as are discussed below, the purchaser has the right to reject the goods and rescind the purchase agreement.  In such circumstances it is unnecessary to proceed with a broader analysis to establish fundamental breach of contract, such as was undertaken in Knee.

No comments: