Natferrous Pte Ltd v Tradelink Hardware Pte Ltd: Breach of Contract for Non-Conforming Stainless Steel Scrap
In 2005, Natferrous Pte Ltd sued Tradelink Hardware Pte Ltd in the High Court of Singapore, alleging breach of contract for supplying non-conforming stainless steel scrap. Natferrous claimed the scrap was of an inferior grade (200 series) compared to what was agreed upon (300 series). Tradelink counterclaimed for damages, alleging Natferrous failed to accept the full order. The court, presided over by Justice Tan Lee Meng, found in favor of Natferrous, awarding damages for the difference in price between the two grades of stainless steel scrap and dismissing Tradelink's counterclaim.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Natferrous sued Tradelink for breach of contract, alleging the supplied stainless steel scrap was of inferior quality. The court found in favor of Natferrous.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Natferrous Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Richard Kuek, Claire Nazar |
| Tradelink Hardware Pte Ltd | Defendant | Corporation | Counterclaim Dismissed | Lost | Zaheer Merchant, Brian Tan, Sophine Chin |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Richard Kuek | Gurbani and Co |
| Claire Nazar | Gurbani and Co |
| Zaheer Merchant | Madhavan Partnership |
| Brian Tan | Madhavan Partnership |
| Sophine Chin | Madhavan Partnership |
4. Facts
- Natferrous ordered 400mt of stainless steel scrap from Tradelink.
- Natferrous claimed the agreed quality was the 300 series stainless steel scrap.
- Tradelink supplied 389.341mt of stainless steel scrap to Natferrous.
- The supplied scrap was discovered to be the 200 series, an inferior grade.
- Natferrous settled claims with its buyers for compensation.
- A test confirmed the scrap was the 200 series, not the 300 series.
- The parties agreed that the price of the 200 series is 25% less than the 300 series.
5. Formal Citations
- Natferrous Pte Ltd v Tradelink Hardware Pte Ltd, Suit 389/2004, [2005] SGHC 131
6. Timeline
| Date | Event |
|---|---|
| Contracts made between Natferrous and Tradelink for stainless steel scrap. | |
| Tradelink delivered 389.341mt of stainless steel scrap to Natferrous between January and March. | |
| Natferrous tested six samples of stainless steel scrap bought from Tradelink. | |
| Chew denied liability for supplying inferior quality stainless steel scrap in an email to Wong. | |
| Vinod's company tried to purchase stainless steel scrap from Natferrous. | |
| Wong stated that the contract was made on this date in a police report. | |
| Chew telephoned Ang on a number of occasions in January when he had new stocks of stainless steel scrap to sell. | |
| Chew telephoned Ang on a number of occasions in February when he had new stocks of stainless steel scrap to sell. | |
| In the latter part of January 2004, Chew telephoned Ang on a number of occasions when he had new stocks of stainless steel scrap to sell. | |
| In February 2004, Chew telephoned Ang on a number of occasions when he had new stocks of stainless steel scrap to sell. | |
| Natferrous ordered by phone and Short Message Service large quantities of stainless steel scrap from THP in January 2004. | |
| Natferrous ordered by phone and Short Message Service large quantities of stainless steel scrap from THP in February 2004. | |
| Contracts between NAT and THP were worth more than $800,000 in January 2004. | |
| Contracts between NAT and THP were worth more than $800,000 in February 2004. | |
| Contracts between THP and Tsing Yi were worth much more than $1m during that period in January 2004. | |
| Contracts between THP and Tsing Yi were worth much more than $1m during that period in February 2004. | |
| THP regularly imported goods from Brunei in January 2004. | |
| THP regularly imported goods from Brunei in February 2004. | |
| THP operated a US dollar account for his trade in January 2004. | |
| THP operated a US dollar account for his trade in February 2004. | |
| THP consulted the London Metal Exchange prices for his business in January 2004. | |
| THP consulted the London Metal Exchange prices for his business in February 2004. | |
| THP withdrew “petty cash” of more than $170,000 from his company’s account in January 2004. | |
| THP withdrew “petty cash” of more than $170,000 from his company’s account in February 2004. | |
| Natferrous instituted proceedings against THP after further correspondence between the parties failed to resolve the dispute in January 2004. | |
| Natferrous instituted proceedings against THP after further correspondence between the parties failed to resolve the dispute in February 2004. | |
| Vinod filed his first affidavit of evidence-in-chief. | |
| Judgment delivered by the High Court. |
7. Legal Issues
- Breach of Contract
- Outcome: The court found that the defendant breached the contract by supplying non-conforming goods.
- Category: Substantive
- Sub-Issues:
- Failure to supply goods conforming to description
- Sale by Sample
- Outcome: The court found that the sale was not a sale by sample.
- Category: Substantive
- Sale by Description
- Outcome: The court found that the sale was a sale by description and the goods did not correspond with the description.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
11. Industries
- Scrap Metal
- Manufacturing
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| James Drummond & Sons v E H Van Ingen & Co | N/A | Yes | (1887) 12 App Cas 284 | N/A | Cited to explain the purpose of a sample in a sale by sample contract. |
| Sim Ah Song v Rex | N/A | Yes | [1951] MLJ 150 | N/A | Cited to explain the role and requirements of expert witness testimony. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Sale of Goods Act (Cap 393, 1999 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Stainless steel scrap
- 300 series
- 200 series
- Non-conforming goods
- Sale by description
- Sale by sample
15.2 Keywords
- contract
- stainless steel
- scrap metal
- breach of contract
- sale of goods
16. Subjects
- Contract Law
- Sale of Goods
- Commercial Dispute
17. Areas of Law
- Contract Law
- Sale of Goods