IPTE Asia Pacific v JMA Technologies: Breach of Contract & Defective Test Systems

IPTE Asia Pacific Pte Ltd sued JMA Technologies Pte Ltd in the High Court of Singapore on 12 October 2005, claiming payment for test systems sold and delivered under a supply agreement. JMA Technologies counterclaimed, alleging the systems were defective, unfit for purpose, and breached warranties. Justice Kan Ting Chiu found in favor of IPTE Asia Pacific, ordering JMA Technologies to pay US$310,385.01 plus interest and damages to be assessed, and dismissed the counterclaim.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

IPTE Asia Pacific sued JMA Technologies for failing to pay for delivered test systems. The court found in favor of IPTE, dismissing JMA's counterclaim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
IPTE Asia Pacific Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
JMA Technologies Pte LtdDefendantCorporationCounterclaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Tan Teng MuanMallal and Namazie
Troy Yeo Siew ChyeK K Yap and Partners

4. Facts

  1. IPTE Asia Pacific Pte Ltd supplied test systems to JMA Technologies Pte Ltd under a supply agreement.
  2. The test systems were intended to test printed circuit board assemblies for mobile phones.
  3. The test systems were delivered in December 2002 and commissioned and accepted on 26 June 2003.
  4. JMA Technologies failed to make full payment for the equipment.
  5. JMA Technologies claimed the test systems were defective and unfit for purpose.
  6. JMA Technologies alleged breach of warranties regarding correlation with Agilent GS8000 and test time.
  7. JMA Technologies counterclaimed for losses due to slow test process and lost order from Top Rank Cosmos Sdn Bhd.

5. Formal Citations

  1. IPTE Asia Pacific Pte Ltd v JMA Technologies Pte Ltd, Suit 1051/2003, [2005] SGHC 192

6. Timeline

DateEvent
Email sent regarding assurance of no correlation issues between Agilent GS8000 and R&S tester.
Supply agreement signed.
Test systems delivered to the defendant.
Test systems commissioned and accepted by the defendant.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendant breached the contract by failing to pay for the delivered goods and failing to take up an additional test fixture.
    • Category: Substantive
    • Sub-Issues:
      • Failure to make full payment
      • Breach of warranties
  2. Breach of Warranty
    • Outcome: The court found that the defendant had not shown to its satisfaction that there were correlation issues, or that the problems with the test systems could not be resolved in time if further attention was given.
    • Category: Substantive
    • Sub-Issues:
      • No correlation issue with Agilent GS8000
      • Failure to achieve 2mins 40sec test time
  3. Implied Terms on Quality and Fitness
    • Outcome: The court found that the defendant had not substantiated its complaints regarding the implied terms of quality and fitness.
    • Category: Substantive

8. Remedies Sought

  1. Payment for goods sold and delivered
  2. Damages for failure to take up additional test fixture
  3. Refund of payment for systems
  4. Damages for loss of production
  5. Damages for loss of profit

9. Cause of Actions

  • Breach of Contract
  • Breach of Warranty

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Manufacturing
  • Telecommunications

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Sales of Goods Act (Cap 393, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Test systems
  • Printed circuit board assemblies
  • PCBAs
  • Rohde & Schwarz CMD55 test systems
  • R&S systems
  • Test fixtures
  • Supply agreement
  • Correlation issues
  • Agilent GS8000
  • Test time
  • Cpk
  • Process Capability index

15.2 Keywords

  • Contract
  • Test Systems
  • Breach of Contract
  • Warranty
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Contract Law80
Breach of Contract75
Warranties70
Sale of Goods65
Performance of Contract60
Supply Agreement50

16. Subjects

  • Contract Law
  • Commercial Law
  • Sales of Goods