M&J Polymers Ltd and Imerys Minerals Ltd entered into a contract for M&J to supply dispersants, which are chemicals used in the breakdown of clay and other materials, to Imerys. M&J began supplying dispersants in 1991. A new supply contract was entered into in January 2005 for the supply of four dispersants, Jaypol 1183, Jaypol BTC2, Jaypol 1150 and Jaypol 1140.

The contract also, subject to various provisions for termination, that the agreement had a three year minimum term. M&J gave a warranty as to quality and provided that the goods were fit for the purpose that Imerys had made known to them.

The supply contract was terminated by Imerys in May 2006. M&J treated this notice of termination from Imerys as an unlawful repudiation which M&J accepted.

1. Whether one of the dispersants delivered by M&J in 2005 was fit for the purpose.

2. Whether Imerys was entitled to refuse to accept any further deliveries of it as from 31 August 2005.