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ACCA Applied Skills · Corporate and Business Law (Global) · Obligations of the seller and buyer, and provisions common to both

Evora Ltd sells 2,000 litres of industrial paint to Fenn Co under the CISG. Fenn tells Evora before contracting that it needs paint suitable for use on salt-water marine equipment, relying on Evora's skill. The paint delivered corrodes in sea water but is fine for ordinary indoor use. Which statement is correct?

Evora is in breach. Under the CISG goods must fit any particular purpose expressly or impliedly made known to the seller at contracting, where the buyer reasonably relies on the seller's skill. No written warranty is required, and ordinary-use fitness is not enough.

  1. AEvora has complied, because the paint is fit for the ordinary purposes of paint
  2. BEvora is in breach, because goods must be fit for a particular purpose made known to the seller, where the buyer reasonably relied on the seller's skillCorrect
  3. CEvora is in breach only if the contract expressly included a written warranty of marine suitability

Explanation

Article 35 CISG requires goods to be fit for any particular purpose made known to the seller at contracting, unless the buyer did not rely, or could not reasonably rely, on the seller's skill. Fenn disclosed the purpose and relied on Evora, so no express warranty is needed. Fitness for ordinary use alone does not satisfy this.

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