Contract; contents; terms implied by legislation; sale of goods; duty to deliver goods suitable for buyer's purpose.
Facts: Expo Aluminium asked WR Pateman, a manufacturer of window frames, if Pateman could supply some aluminium windows which Expo needed to install in a client's house. When ordering the windows, Expo told Pateman: 'There is nothing between this job and the South Pole'. This was an informal and indirect way of telling the manufacturer that the house would be fully exposed to strong winds and rain. When the windows were installed in the client's house they were found to leak. Expo alleged there was a term in their contract with Pateman that the windows would be suitable to withstand strong winds and driving rain.
Issue: Had Expo sufficiently indicated the purpose for which the windows were required, and shown that they were relying on Pateman to supply something suitable to withstand exposure to strong wind and rain?
Decision: Taking account of what Expo had said to Pateman when ordering the window frames, s 19(1) of the Sale of Goods Act 1923 (NSW) implied a term in the contract that the goods would be suitable for the buyer's purpose. This required the windows to be weatherproof in an exposed situation. This implied term had been breached by supplying windows that leaked.
Reason: The buyer had sufficiently indicated the purpose for which the goods were required by saying 'There is nothing between this job and the South Pole' because this statement could only have meant that the windows would need to be sufficiently weatherproof to withstand strong winds and driving rain. The buyer's reliance on the seller to supply suitable goods can often be established by inference and the necessary inference can often be drawn from the buyer having stated his or her purpose. The court held that this was so in the present case.