Thompson v Vincent | |
---|---|
Court | Court of Appeal of New Zealand |
Full case name | Thompson v Vincent |
Decided | 21 June 2001 |
Citation(s) | [2001] 3 NZLR 355 |
Court membership | |
Judge(s) sitting | McGrath, 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]
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.
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.
The court awarded them $320,000 in damages for the misrepresentation.
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Bisset v Wilkinson [1927] AC 177 is a leading contract law case from New Zealand on the issue of misrepresentation. The case establishes that a mere misstatement of opinion given fairly cannot amount to a misrepresentation.
Gordon v Selico (1986) 18 H.L.R. 219 is an English contract law on the subject of misrepresentation by action. It was held that positive actions - in this case, the concealment of dry rot - could amount to operative misrepresentations.
Redgrave v Hurd (1881) 20 Ch D 1 is an English contract law case, concerning misrepresentation. It holds that a contract can be rescinded for innocent misrepresentation, even where the representee also had the chance to verify the false statement.
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Wakelin v R H & E A Jackson LTD (1984) 2 NZCPR 195 is an often cited case of the High Court of New Zealand regarding misstatements. The judgement ruled that merely being silent on an important fact can be construed as a misstatement in itself.
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Gallagher v Young [1981] 1 NZLR 734 is a cited case in New Zealand regarding relief under the Contractual Remedies Act 1979 where a contract is repudiated by one of the parties.
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