Case$5$

Syncrude ordered $30$ gearboxes from Hunter, a manufacturer, to drive its conveyor belts in the Alberta tar sands project. Syncrude provided specifications of what the gearboxes were required to do$,$ and Hunter designed them to meet those specifications. The contract contained an express term guaranteeing the gearboxes for two years. When the period had expired, the gearboxes developed faults that were found to be due to faulty designed.

Issues: Liability of Hunter for the design faults which caused the gearboxes to fail; Liability of Hunter under the statutory warranty in the Sale of Goods Act.