In: Operations Management
Always Hot Hot Bhd has agreed to sell a melting furnace to
Always Warm Bhd and has
given an undertaking that the melting furnace would have a
temperature of not lower than
1427’C. Always Hot Hot Bhd delivered the furnace but the
specification was not fulfilled,
i.e. the furnace could only reach a temperature of 1000’C. Advise
Always Warm Bhd.
Section 15 of the Sale of Goods Act is on the sale of goods by description. It states that where there is a contract for the sale of goods by description there is an implied condition that the goods shall correspond with the description; and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.
In this case, the party’s previous contracts entailed the sale goods being melting furnace, which was sold have a temperature of not lower than 1500 degree Celsius. Later the previous contract description of melting furnace was used to order and melting furnace of identical quality was delivered but, only reach a temperature of 1427 degree Celsius. The court held that the goods did not comply with the description.
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