Air Transworld Ltd v Bombardier Inc [2012] EWHC 243 (Comm) (20 February 2012)

Air Transworld Ltd v Bombardier Inc [2012] EWHC 243 (Comm) (20 February 2012)

Article 4 of the APA, by necessary inference and sufficiently clear language, excludes the implied conditions of the Sale of Goods Act 1979. The APA and Assignment Agreement constitute international supply contracts under UCTA, so statutory controls on exclusion clauses do not apply. The claimant's right to reject and claim a refund is governed solely by the contractual warranty, not by statutory implied terms.

Citation
[2012] EWHC 243 (Comm)
Parties
Claimant: Air Transworld Limited; Defendant: Bombardier Inc
Jurisdiction
England and Wales
Judgment Date
20 February 2012
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Exclusion Clauses, Sale of Goods, International Supply Contracts, Interpretation of Contract Terms, Unfair Contract Terms Act
Contract Law Commercial Law Exclusion Clauses Sale of Goods International Supply Contracts Interpretation of Contract Terms Unfair Contract Terms Act

Case Brief

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Parties

Air Transworld Limited

Claimant

Bombardier Inc

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether Article 4 of the Aircraft Purchase Agreement validly excludes implied conditions under the Sale of Goods Act 1979
  2. 2 Whether the APA and Assignment Agreement constitute 'International Supply Contracts' under the Unfair Contract Terms Act 1977
  3. 3 Whether the claimant validly rejected the aircraft and is entitled to a refund or damages

Ratio Decidendi

Article 4 of the APA, by necessary inference and sufficiently clear language, excludes the implied conditions of the Sale of Goods Act 1979. The APA and Assignment Agreement constitute international supply contracts under UCTA, so statutory controls on exclusion clauses do not apply. The claimant's right to reject and claim a refund is governed solely by the contractual warranty, not by statutory implied terms.

Court Disposition

Claim dismissed

Orders

  • The claimant's claim for a declaration of valid rejection and refund is dismissed.
  • The claimant is not entitled to damages under the Sale of Goods Act 1979.