Where a buyer of goods incorporated into a product and on-sold to a third party voluntarily incurs remedial costs without establishing legal liability to the third party, those costs may not be recoverable as damages for breach of warranty unless the buyer proves the breach caused the need for remediation and the costs were within the seller's reasonable contemplation. A representation implicit in a contract to supply goods in the future is a representation as to a future matter for the purposes of s 52 of the Trade Practices Act, requiring the representee to plead and prove absence of reasonable grounds under s 51A. The conflict between Bence Graphics and Slater v Hoyle on the measure of damages for breach of warranty in sub-sale cases remains unresolved in Australia.
The full text is available to signed-in members, including the 25 later cases that cite this judgment.
4 of the 25 citing cases carry a classified treatment. How each court treated it is available to signed-in members.