In the Case of Chalmers Suspensions International Ltd

question 32

Essay

In the case of Chalmers Suspensions International Ltd. v. B&B Automation Equipment Inc., 2008 CanLII 15767 (ON S.C), the court was asked to answer the following:
i) Was there a condition implied in the contract that the robotic machine be suitable for the purpose specified by Chalmers?
ii) If so, was the condition breached?
iii) If the condition was breached, what was Chalmers’ remedy?

How did the court respond, and why?

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Paid-in Capital

The total amount of money or other assets that shareholders or owners have contributed to the company for use in business operations.

Par Value

The stated value of a financial instrument like a bond or stock share, as declared by the issuer.