Gammasonics Institute for Medical Research Pty Ltd v Comrad Medical Sysytems Pty Ltd

The Gammasonics Institute for Medical Research sought an injunction and damages against Comrad Medical Systems for breach of contract. The dispute arose from the supply of software that was delivered by online download. The matter was heard in the Supreme Court of New South Wales. The Gammasonics Institute argued that Comrad had breached the contract by supplying software that was defective and not fit for purpose. Comrad argued that the software package delivered by online download should not be classed as "goods" for the application of the Sale of Goods Act, and therefore the statutory warranties of fitness for purpose and merchantable quality were not applicable. The court considered whether the breach of contract was a question of mixed fact and law, and whether the implied terms of fitness for purpose and merchantable quality could be applied in this case.

The court found that the software package delivered by online download was properly classed as "goods" for the application of the Sale of Goods Act. The court held that the statutory warranties of fitness for purpose and merchantable quality were applicable, and that implied terms of equivalent effect could be applied by the common law. The court also found that the breach of contract was a question of mixed fact and law, and that the Gammasonics Institute had suffered loss as a result of the breach. The court held that the Gammasonics Institute was entitled to an injunction and damages against Comrad.

The court ordered that Comrad was to pay damages to the Gammasonics Institute in the amount of $70,000, and that Comrad was to deliver a revised software package to the Gammasonics Institute within 14 days. The court also ordered that Comrad was to pay the costs of the Gammasonics Institute in bringing the proceedings.