Walsh v Kerr

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Walsh v Kerr
Coat of arms of New Zealand.svg
Court Court of Appeal of New Zealand
Full case nameWalsh v Kerr
Decided7 June 1989
Citation(s)[1989] 1 NZLR 490
Transcript(s) High Court judgment
Court membership
Judge(s) sitting Cooke P, Somers J, Hardie Boys J

Walsh v Kerr [1989] 1 NZLR 490 is a cited case in New Zealand regarding the remedy of damages for breach of contract. [1] [2]

Contents

Background

The Kerrs owned a student pub in Dunedin, advertising that the lease of the hotel was guaranteed by Wilson Neil Corporation.

The Walshes subsequently purchased the hotel for $1.1 million. Subsequent to the sale, the Walshes discovered that the guarantee would lapse upon any sale.

The Walshes sued the Kerrs for loss of value of the hotel, but the High Court ruled that they had suffered no loss refusing to award any damages, apart for the sum of $10 for nominal damages.

Held

The Court of Appeal ruled that they had suffered loss, and awarded them damages of $5,000.

Related Research Articles

At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognized at law, the loss must involve damage to property, or mental or physical injury; pure economic loss is rarely recognized for the award of damages.

Negligence is a failure to exercise appropriate care expected to be exercised in similar circumstances.

<span class="mw-page-title-main">Liquidated damages</span> Damages agreed for a delay in a contract

Liquidated damages, also referred to as liquidated and ascertained damages (LADs), are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach. This is most applicable where the damages are intangible.

Economic loss is a term of art which refers to financial loss and damage suffered by a person which is seen only on a balance sheet and not as physical injury to person or property. There is a fundamental distinction between pure economic loss and consequential economic loss, as pure economic loss occurs independent of any physical damage to the person or property of the victim. It has also been suggested that this tort should be called "commercial loss" as injuries to person or property can be regarded as "economic".

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Hart v O'Connor [1985] UKPC 1 is an important case in New Zealand, also relevant for English contract law, regarding mental capacity to enter into contract as well as regarding unconscionable bargains, which made it as far as the Privy Council.

<i>Couch v Branch Investments (1969) Ltd</i>

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

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<i>SGS (New Zealand) Ltd v Quirke Export Ltd</i> New Zealand contract case law

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<i>Pratt Contractors Ltd v Palmerston North City Council</i>

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<i>Jetz International Ltd v Orams Marine Ltd</i>

Jetz International Ltd v Orams Marine Ltd [1999] DCR 831 is a cited case in New Zealand confirming that the consumer protections under the Consumer Guarantees Act cover consumer goods owned even if they are owned by a limited liability company, as long as they are used for consumer purposes.

<i>Jolly v Palmer</i>

Jolly v Palmer [1985] 1 NZLR 658 is a cited case in New Zealand regarding the legal enforceability of a contract where there is a breach of a stipulation.

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<i>Gregory v Rangitikei</i>

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References

  1. Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. [ page needed ]. ISBN   0-86472-555-8.
  2. Walker, Campbell (2004). Butterworths Student Companion Contract (4th ed.). LexisNexis. p. 233. ISBN   0-408-71770-X.