Thompson v Vincent

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Thompson v Vincent
Coat of arms of New Zealand.svg
Court Court of Appeal of New Zealand
Full case nameThompson v Vincent
Decided21 June 2001
Citation(s)[2001] 3 NZLR 355
Court membership
Judge(s) sittingMcGrath, Ellis and McGechan JJ

Thompson v Vincent [2001] 3 NZLR 355 is a cited case in New Zealand confirming that where a party has cancelled a contract on unjustifiable grounds, can legally cancel the contract if justifiable grounds are later discovered. [1]

New Zealand Country in Oceania

New Zealand is a sovereign island country in the southwestern Pacific Ocean. The country geographically comprises two main landmasses—the North Island, and the South Island —and around 600 smaller islands. It has a total land area of 268,000 square kilometres (103,500 sq mi). New Zealand is situated some 2,000 kilometres (1,200 mi) east of Australia across the Tasman Sea and roughly 1,000 kilometres (600 mi) south of the Pacific island areas of New Caledonia, Fiji, and Tonga. Because of its remoteness, it was one of the last lands to be settled by humans. During its long period of isolation, New Zealand developed a distinct biodiversity of animal, fungal, and plant life. The country's varied topography and its sharp mountain peaks, such as the Southern Alps, owe much to the tectonic uplift of land and volcanic eruptions. New Zealand's capital city is Wellington, while its most populous city is Auckland.

Contract agreement having a lawful object entered into voluntarily by multiple parties (may be explicitly written or oral)

A contract is a legally binding agreement which recognises and governs the rights and duties of the parties to the agreement. A contract is legally enforceable because it meets the requirements and approval of the law. An agreement typically involves the exchange of goods, services, money, or promises of any of those. In the event of breach of contract, the law awards the injured party access to legal remedies such as damages and cancellation.

Contents

Background

The Thompsons were developing a 22-24 unit motel complex. Prior to construction, the Vincents entered into a sale and purchase agreement for the motel, giving them a 20-year lease for $500,000.

Lease business contract between two parties, the lessor (owner) and lessee (user), for use of property

A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased.

Within two years of ownership, the Vincents abandoned the motel and their lease.

Soon after the abandonment, the Vincents discovered that the vendors only had planning consent for only 12 units, and not 24. They then used this as a basis for a claim for misrepresentation, in an effort to get their money back under the Contractual Remedies Act 1979.

A concept of English law, a misrepresentation is an untrue or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The misled party may normally rescind the contract, and sometimes may be awarded damages as well.

The Contractual Remedies Act 1979 is a statute of the New Zealand Parliament. It provides remedies in respect of misrepresentation, repudiation or breach of contract in New Zealand

Held

The court awarded them $320,000 in damages for the misrepresentation.

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<i>Wakelin v R H & E A Jackson Ltd</i>

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<i>Young v Hunt</i>

Young v Hunt [1984] 2 NZLR 80 is a case that establishes in New Zealand case law that a contract can not simply be cancelled due to misrepresentation, unless that misrepresentation was a breach of an "essential" term of the contract.

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<i>Gallagher v Young</i>

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<i>M E Torbett Ltd v Keirlor Motels Ltd</i>

M E Torbett Ltd v Keirlor Motels Ltd 1 NZBLC 102,079 is a cited case in New Zealand regarding fraud being a factor in determining whether an exclusion clause is enforceable under the Contractual Remedies Act [1979].

<i>Jolly v Palmer</i>

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<i>Mercurius Ventures Ltd v Waitakere City Council</i>

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<i>Donnelly v Westpac Banking Corp</i>

Donnelly v Westpac Banking Corp (1999) 6 NZBLC 102,781 is a cited case in New Zealand confirming that where a party has cancelled a contract on unjustifiable grounds, can legally cancel the contract if justifiable grounds are later discovered.

<i>Pearson v Wynn</i>

Pearson v Wynn (1986) 2 NZCPR 449 is a cited case in New Zealand regarding the requirement under section 7(4)(b) of the Contractual Remedies Act 1970 that a breach of a contract must be "substantial" for a contract to be cancelled.

<i>Sharplin v Henderson</i>

Sharplin v Henderson [1990] 2 NZLR 134 is a cited case in New Zealand regarding the requirement under section 7(4)(b) of the Contractual Remedies Act 1970 that a breach of a contract must be "substantial" for a contract to be cancelled.

References

  1. Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. pp. 404–405. ISBN   0-86472-555-8.