CW Continental Corp v Patec Pte Ltd: Breach of Contract for Failure to Deliver Machinery

In Suit No 205 of 2015, CW Continental Corp sued Patec Pte Ltd in the High Court of Singapore, seeking damages for Patec's failure to deliver customized machinery and equipment. CW Continental Corp contended that Patec's failure to deliver the machinery caused Honeywell to terminate its contract with CW Continental Corp. Patec Pte Ltd argued that CW Continental Corp failed to make payment. The court, presided over by Senior Judge Andrew Ang, found Patec Pte Ltd liable for breach of contract and awarded damages to CW Continental Corp.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Oral Judgment

1.5 Jurisdiction

Singapore

1.6 Description

CW Continental Corp sued Patec Pte Ltd for breach of contract due to failure to deliver machinery, resulting in damages. The court found Patec liable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
CW Continental CorpPlaintiffCorporationJudgment for PlaintiffWon
Patec Pte LtdDefendantCorporationJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Andrew AngSenior JudgeYes

4. Counsels

Counsel NameOrganization
Loong Tse ChuanAllen & Gledhill LLP
Chan Tuan San, JonathanAllen & Gledhill LLP
Balasubramaniam Ernest YogarajahUniLegal LLC
Bernadette ChenUniLegal LLC

4. Facts

  1. Plaintiff contracted with Defendant for the delivery of a Patec Turnkey System.
  2. The Patec Turnkey System was intended for delivery to Honeywell under a separate contract.
  3. Defendant failed to deliver the Patec Turnkey System to the Plaintiff by the agreed deadline.
  4. Honeywell terminated its contract with the Plaintiff due to the Defendant's failure to deliver.
  5. Defendant sold the Patec Turnkey System directly to Honeywell for a higher price.
  6. The court found that the Defendant breached its obligations under the Purchase Order.
  7. The court awarded damages to the Plaintiff for loss of profit.

5. Formal Citations

  1. CW Continental Corp v Patec Pte Ltd, Suit No 205 of 2015, [2016] SGHC 224

6. Timeline

DateEvent
Plaintiff issued Purchase Order 4502007163
Defendant accepted Purchase Order 4502007163
Honeywell gave notice to Plaintiff to complete and deliver by 3 November 2014
Deadline for completion and delivery of Patec Turnkey System
Honeywell notified Plaintiff of termination of Honeywell Contract
Defendant sold remaining items of Patec Turnkey System to Honeywell
Trial began
Judgment reserved
Judgment issued

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the Defendant breached its obligations under the Purchase Order by failing to deliver the Patec Turnkey System to the Plaintiff.
    • Category: Substantive
    • Sub-Issues:
      • Failure to deliver
      • Repudiatory breach
  2. Mitigation of Loss
    • Outcome: The court found that the Plaintiff did not act unreasonably in refusing to give Honeywell a 25% discount.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Manufacturing

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Francis v CockrellQueen's BenchYes(1870) LR 5 QB 501England and WalesCited for the implied term that an article supplied for a specific purpose shall be reasonably fit for that purpose.
Kwei Tek Chao and others v British Traders and Shipper LdN/AYes[1954] 2 WLR 365N/ACited for the principle that loss of profit is the appropriate measure of damage when goods of special manufacture are sold and it is known that they are to be resold.
Jia Min Building Construction Pte Ltd v Ann Lee Pte LtdN/AYes[2004] 3 SLR(R) 288SingaporeCited for the principle that failure to mitigate loss must be pleaded and proved by the defendant.
The “Rainbow Star”N/AYes[2011] 3 SLR 1SingaporeCited for the principle that failure to mitigate loss must be pleaded and proved by the defendant.
Yip Holdings Pte Ltd v Asia Link Marine Industries Pte LtdN/AYes[2012] 1 SLR 131SingaporeCited for the principle that failure to mitigate loss must be pleaded and proved by the defendant.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
Civil Law Act (Cap 43, 1999 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Patec Turnkey System
  • Honeywell Contract
  • Purchase Order
  • Intel 7 parts qualifying strategy
  • Plan for IHS Turnkey Solution
  • Qualification build
  • Buy-off requirements

15.2 Keywords

  • breach of contract
  • sale of goods
  • damages
  • machinery
  • equipment

17. Areas of Law

Area NameRelevance Score
Breach of Contract95
Contract Law95
Contractual terms80
Implied Terms75
Damages70
Remedies65
Discharge60
Collections10

16. Subjects

  • Contract Law
  • Commercial Law