Contract; contents; terms implied by legislation; sale of goods; implied condition requiring delivery of goods suitable for buyer's purpose; sale by trade name.
Facts: Marshall asked Baldry, a seller of Bugatti cars, for information about 'the eight cylinder Bugatti'. Baldry said the car was available and offered to supply information. Marshall then explained why he wanted the car - he said he needed a fast, easily managed and comfortable car, suitable for touring. Baldry and Marshall then entered into a contract for 'an eight cylinder Bugatti car fully equipped and finished to standard specification as per the car inspected'. The car delivered proved defective and Marshall claimed that it was not in fact suitable for his stated purposes. Baldry argued that he was not obliged to deliver goods suitable for Marshall's purposes because the car had been bought under its trade name.
Issue: Was it an implied term of the contract that the car be suitable for the buyer's purpose, even though it had been bought under its trade name?
Decision: It was clear on the facts that the buyer had relied on the seller to supply suitable goods, and this gave rise to an implied term requiring the car to be suitable for the buyer's purpose, regardless of the use of the trade name to describe it.
Reason: The mere fact that goods are described by trade name does not necessarily exclude the implied term regarding suitability of purpose. The test is: Did the buyer themselves, in purchasing the goods by name, form the judgment that the goods would be suitable for their own purpose, without reliance on the seller? If so, no term regarding the suitability of the goods for the buyer's purpose is implied into the contract. If there was still an indication of purpose and reliance then such a term may be implied.