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A requirement that the subject matter of a Contract be ‘fit for purpose’ goes to the suitability of whatever is being supplied under the Contract (whether Works, Services or Goods) for the particular use that the acquiring party intends to put it, which is expressly or by implication made known to the supplier or Contractor, or for which the supplier or Contractor represents that it is reasonably fit before the Contract was made. It is a more specific requirement than that the goods be ‘of merchantable quality’ or 'acceptable quality', ie goods may be of merchantable quality or acceptable quality but not fit for a particular purpose. Fitness for purpose may be expressly required in a Contract but it is also one of the terms that may be implied into a Contract either by statute or at common law. The requirement that goods be fit for purpose is implied into a Contract for the supply of goods to a consumer under the Trade Practices Act 1974 (Cth) supplied before 1 January 2011. The requirement of fitness for purpose is one of the guarantees provided under the Australian Consumer Law for goods supplied to a consumer from 1 January 2011. |
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