跪求了解商法合同法的达人,帮我指出案例中相关的法令可以recover CE 的losses的.
跪求了解商法合同法的达人,帮我指出案例中相关的法令可以recover CE 的losses的.
Civil Engineering Pty Limited (CE) secured a contract to construct a bypass on the Great Western Highway to ease traffic congestion.The project involved tunnelling under the Blue Mountains from Penrith to Mount Victoria a distance of 20 kilometres.CE signed a contract with the Roads and Traffic Authority (RTA) to execute and complete the work within three years.To do this CE needed to purchase a tunnelling machine from Lotus Engineering Limited (Lotus) a company incorporated in Japan and having its place of business in Japan.CE had dealt with Lotus for many years and their business relationship was very good.For this reason the contract for the sale of the tunnelling machine merely stated the price ($75m) and delivery date.Lotus was aware of the use that CE intended to put the machine to as their engineers had visited the site and assured CE that the machine was suitable for the task.The work commenced and it immediately became clear that the machine was incapable of cutting through the rock in sufficient time to allow CE to finish within the time stated in its contract with RTA.The estimate of the potential liquidated damages CE was exposed to was $50m.CE therefore purported to rescind its contract with Lotus and notified Lotus to retake possession of the machine.CE then completed the work on time with an alternate machine that it had purchased for $150m.CE now seeks your advice as to the recovery of its losses and the appropriate jurisdiction for such recovery.Were there provisions that might have been included in the contract that would have made this task less difficult?
Is this a UCC question?
under UCC article two,this is about the merchantability.As the seller (the japanese company) is a merchant,it has a implied warranty of merchantability.Restate it,the machine should be able to deal with the task that CE faced.If the seller violate the warranty,the buyer can give a notification to the seller seasonably and stored the machine.Any commercially reasonable expenses related to the seller's violation of the warranty and commercial losses can be covered and CE can seek a remedy under UCC or CISG.
If the two parties write a provision about which law will be applied to the contract and some details about the implied warranty in order to make an expressed warranty in the contract,the buyer will be able to remedy the loss easier.