Fitness for Purpose Clause

A Fitness for Purpose Clause is a contract clause that ensures the goods, services, or works delivered by the supplier meet the required performance specifications outlined in the contract.

• Context:
  • It can (typically) impose a specific obligation on the contractor to ensure that the completed works meet the precise requirements defined by the buyer or client.
  • It can (often) be found in construction and engineering contracts, where it is critical that the works performed by the contractor satisfy the designated use or purpose as agreed upon.
  • It can range from being a Standard Fitness for Purpose Clause to being a Customized Fitness for Purpose Clause tailored to specific project needs.
  • It can override the general requirements of satisfactory quality and workmanship if the contract explicitly demands a certain result.
  • It can lead to significant liabilities if the works or products fail to meet the defined purpose, making it essential for contractors to understand the risks involved.
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• Example(s):
  • a Construction Contract for a new office building, which includes a clause stating that the building must be capable of serving as the headquarters for a major corporation, implying specific spatial and technological requirements.
  • a Supply Agreement for a medical device, which stipulates that the device must perform under certain conditions to be considered fit for its intended medical use.
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• Counter-Example(s):
  • Quality Assurance Clauses, which focus on the general quality and standards of workmanship and materials but do not guarantee that the final product will be suitable for a specific, intended purpose.
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• See: Contractual Obligation, Implied Warranty, Specific Performance

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