BUSA 364 Lecture Notes - Lecture 5: 18 Months, King Django, Recovery Boiler
3 Apr 2016
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Deschamps, fish, abella, charron and rothstein jj. (121 paras. ) Contracts and obligations sale rights and obligations of parties warranties . Warranty of quality latent defect any seller who knows or is legally presumed to know about the defects of the thing is obliged to pay for all damage suffered by the buyer appeal dismissed. December 1984, domtar purchased a recovery boiler manufactured by c. e. (now abb and alstom) for ,500,000. The contract of sale included a clause limiting the seller"s liability. The boiler"s design included a superheater with h-style tie welds even though, at the time, c. e. was aware of problems resulting from the use of such welds and knew about the technology of hinge-pin attachments. In march 1989, 18 months after the boiler was put into service, tests by domtar revealed some leaks and hundreds of cracks in the superheater"s tubes.
