Salleh Abas FJ:

This is an appeal from the decision of Gunn Chit Tuan, J The facts are as follows:

The Facts:

The respondent, one Alan McKnight, was a squadron leader in the Royal Australian Air Force (RAAF). In January 1978 he was just posted to the RAAF base at Butterworth and expected to be there for the next three years. Under an agreement between his Government and the Malaysian Government, the respondent as a serviceman was entitled to purchase in Malaysia a duty-free car for local use provided that the car would be taken out of Malaysia at the end of his tour of duty, and if the same car was imported to Australia he was also entitled to an Australian import duty exemption. As he enjoyed tax exemptions from both countries, i.e., Malaysia and Australia, he decided to buy a car which he could take back to and use in Australia. But he must buy a car which conformed to the Australian Design Regulations (ADRs); otherwise it could not be registered in Australia, in particular in New South Wales and Victoria, where he expected to be reposted.

Having made up his mind to buy such a car he contacted the appellants' salesman named Mr. Thomas, and after finding the services of t