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Company K is the main contractor to Company Y, in the construction of an office building. Among the work scopes included in the construction work

Company K is the main contractor to Company Y, in the construction of an office building. Among the work scopes included in the construction work is the supply, installation and commissioning of the air-conditioning system. Kompani Y requires that the air-conditioning system be warranted for up to 3 years. Panas-Sonic, the supplier for the air-conditioning system has no issue to extend the warranty up to 3 years to Company K. However, the defect liability period in the contract between Company K and Company Y is only 18 months. Syarikat K seeks your advice on the principle of collateral warranty.

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