G. W. P. Gunawardena vs Ceylon Steel Corporation – CA 906/1993-2011
The case between G. W. P. Gunawardena (Plaintiff-Appellant) and Ceylon Steel Corporation, now substituted by Ceylon Heavy Industries & Construction Co. Ltd. (Defendant-Respondent), addressed whether technical representations in promotional documents regarding the quality and performance of a rice par boiler/drier machine formed binding contractual terms and whether a defective machine entitled the buyer to rescind the contract and recover the purchase price. It was held that the representations in the documents constituted express contract terms and that failure to meet the stipulated standards amounted to a fundamental breach, justifying rescission and refund. The holding reaffirmed the principle that express terms in sales representations, when forming part of the inducement and basis of
