2019 MarsdenLR 1668

FEDERAL COURT PUTRAJAYA
CLARIANT MASTERBATCHES (M) SDN BHD – Appellant
Versus
PRESTIGE DYNAMICS INDUSTRIES SDN BHD – Respondent
[Civil Appeal No: 02(f)-70-06-2017(P)]

A buyer may recover damages for breach of warranty if the goods do not meet stated conditions, even if the buyer previously accepted the goods without proper documentation.

Headnote:The appeal arises from a breach of contract claim involving the supply of a product containing hazardous substances, conflicting with the plaintiff's purchase conditions under the Subject PO. The court held that despite the knowledge of the hazardous substance, the buyer accepted the product without insisting on compliance documentation, waiving rights to a breach claim. The critical findings determined that contractual obligations were not fulfilled, thus establishing liability for damages paid under a third-party contract. The matter ultimately hinges on the implied warranty from the Sale of Goods Act 1957, with the appeal being dismissed due to sufficient evidence proving the damages arising directly from the breach. The court underscores the necessity of compliance with contractual warranties and conditions in commercial transactions.