Dependable Motors Pty Ltd v Ashford Shire Council [1959] HCA 25

Dependable Motors Pty Ltd v Ashford Shire Council [1959] HCA 25

The council did not, by its own actions or through an authorised agent, make known its purpose for the tractor to the seller in such a way as to show it relied upon the seller's skill or judgment; rather, reliance was placed solely on the council's selected expert. Therefore, the implied condition of fitness under s. 19(1) did not arise, and the appeal must be allowed.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Determination
Outcome
Appeal allowed
Legal Topics
['implied Terms' 'sale of Goods' 'fitness for Purpose' 'corporate Agency' 'statutory Interpretation']
['contract Law' 'commercial Law'] ['implied Terms' 'sale of Goods' 'fitness for Purpose' 'corporate Agency' 'statutory Interpretation']

Case Brief

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Procedural Posture

Appeal / High Court Determination

Legal Issues

  1. 1 ['Whether an implied condition of fitness for purpose under s. 19(1) of the Sale of Goods Act 1923-1953 N.S.W. arose in the sale contract' "Whether the buyer made known the purpose of the tractor to the seller so as to show reliance on the seller's skill or judgment" "Whether the buyer (Ashford Shire Council) actually relied on the seller's skill or judgment in deciding to purchase the tractor"]

Ratio Decidendi

The council did not, by its own actions or through an authorised agent, make known its purpose for the tractor to the seller in such a way as to show it relied upon the seller's skill or judgment; rather, reliance was placed solely on the council's selected expert. Therefore, the implied condition of fitness under s. 19(1) did not arise, and the appeal must be allowed.

Court Disposition

Appeal allowed

Orders

  • ['Order of the Full Court of the Supreme Court discharged' 'In lieu thereof, order that the appeal to the Full Court of the Supreme Court be dismissed with costs' 'Verdict and judgment in the action for the defendant with costs confirmed']