Noreside Construction Ltd -v- Irish Asphalt Ltd [2011] IEHC 364 (04 October 2011)

Noreside Construction Ltd -v- Irish Asphalt Ltd [2011] IEHC 364 (04 October 2011)

Neither the plaintiff's nor the defendant's standard terms and conditions were incorporated into the contract for the supply of aggregate, as the contract was concluded at senior management level before any reference to such terms, and delivery dockets did not have contractual effect. No limitation of liability was...

Source-derived case information.

Citation
[2011] IEHC 364
Parties
Plaintiff: Noreside Construction Limited; Defendant: Irish Asphalt Limited
Jurisdiction
Ireland
Judgment Date
04 October 2011
Procedural Posture
Commercial / Modular Trial on Preliminary Contractual Issue
Outcome
Declarations granted on preliminary issue; contract terms determined as excluding both parties' standard terms and including statutory implied condition of merchantable quality.
Legal Topics
Incorporation of Terms, Implied Terms, Merchantable Quality, Limitation of Liability, Custom and Practice in Industry
Contract Law Commercial Law Incorporation of Terms Implied Terms Merchantable Quality Limitation of Liability Custom and Practice in Industry

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Summary, issues, holding and outcome

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Parties

Noreside Construction Limited

Plaintiff

Irish Asphalt Limited

Defendant

Procedural Posture

Commercial / Modular Trial on Preliminary Contractual Issue

Legal Issues

  1. 1 Whether any limitation of liability was implied by custom
  2. 2 Whether an implied condition of merchantable quality applied

Ratio Decidendi

Neither the plaintiff's nor the defendant's standard terms and conditions were incorporated into the contract for the supply of aggregate, as the contract was concluded at senior management level before any reference to such terms, and delivery dockets did not have contractual effect. No limitation of liability was implied by custom, but there was an implied statutory condition of merchantable quality under s.14(2) of the Sale of Goods Act 1893 as amended.

Court Disposition

Declarations granted on preliminary issue; contract terms determined as excluding both parties' standard terms and including statutory implied condition of merchantable quality.

Orders

  • Declaration that no limitation of liability for defective product is implied by custom into the contract.
  • Declaration that an implied condition of merchantable quality applies under s.14(2) of the Sale of Goods Act 1893 as amended.