Gibson v Cobb Supply Company Pty Ltd

Gibson, the appellant, brought proceedings against Cobb Supply Company Pty Ltd, the respondent, in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the respondent's alleged breach of a contract for the supply of goods.

The central legal issue before the Court of Appeal was whether the respondent had breached the contract by failing to supply goods of merchantable quality, and if so, what damages were recoverable by the appellant. The court was required to consider the implied terms of the contract relating to the quality of goods and the principles governing the assessment of damages for breach of contract.

The Court of Appeal found that the respondent had indeed breached the contract by supplying goods that were not of merchantable quality. The court applied the principles of contract law, particularly those relating to implied warranties of quality under the Sale of Goods Act 1923 (NSW), to determine the respondent's liability. The court reasoned that the goods supplied were unfit for their intended purpose and therefore not of merchantable quality.

The Court of Appeal ordered that the appeal be allowed in part, with the respondent liable for damages. The matter was remitted to the primary judge for the assessment of damages.