The garage's quote was labour costs of £165, and spare parts coming up to £373, with the excess deducted.

The insurers’ assessor completed a document on 21 July 1970 authorising repair only at a lower sum, though Mr Galbraith was not told.

Croydon County Court Judge held there were two contracts, one between the insurers and the garage in the 21 July document, and two an implied contract between the garage and the owner for payment if the insurers did not come up.

Cairns LJ held there was an implied contract between the garage and Mr Galbraith.

Buckley LJ gave a concurring judgment, finding there was no evidence for an inference for implying a contract to pay over the excess.