Eastern Pearl Corporation v Groundhog Sales and Rentals Pty Ltd - Contracts case
Friday 27 April 2012 @ 2.33 p.m. | Corporate & Regulatory
The Federal Court in Melbourne has handed down its judgment in the case of Eastern Pearl Corporation v Groundhog Sales and Rentals Pty Ltd [2012] FCA 406.
The case concerns a breakdown in a commercial relationship between a Japanese company, Eastern Pearl Corporation, and an Australian company, Groundhog Sales and Rentals Pty Ltd. Breach of contract was alleged over the sale of several bulldozers. Eastern Pearl submitted that Groundhog engaged in misleading and deceptive conduct by sending emails containing falsehoods with respect to the machinery. In a cross-claim, Groundhog contended that it was an implied term in the equipment purchase transactions that the equipment would be fit for its purpose or of merchantable quality.
In a sixteen-page judgment, the Court ruled that Eastern Pearl was entitled to damages in the sum of $499,641.33 for breach of the Joint Venture Agreement. It also rejected Groundhog's counter-claim, ruling that the express dealing comprehended that the machinery was to be sold and purchased on an “as is” basis.
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