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Linden Gardens v Lenesta Sludge Disposal [1994]

Facts

  • A defective building was sold to a third party to the building contract foreseeably and immediately after the completion of its construction
  • The building contract explicitly excluded liability to third parties

Issue

  • Could the third party buyer hold the builders liable for their defective building work

Decision

  • Yes, claim allowed

Reasoning

  • The sale was foreseeable as was the subsequent loss
  • The contract had effectively been assigned to the buyer
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