Pendergrast v Chapman
988
Year 988 ( CMLXXXVIII) was a leap year starting on Sunday (link will display the full calendar) of the Julian calendar.
Events
By place
Byzantine Empire
* Fall – Emperor Basil II, supported by a contingent of 6,000 Varangians ...
2 NZLR 177 is a cited case in
New Zealand regarding the consequences of cancellation of a
contract under the
Contractual Remedies Act 1979
The Contractual Remedies Act 1979 was a statute of the New Zealand Parliament. It provided remedies in respect of misrepresentation, repudiation or breach of contract in New Zealand. It was repealed by the Contract and Commercial Law Act 2017.
...
.
Background
Chapman agreed to purchase the Pendergrast's
Epsom property for NZ$650,000, NZ$40,000 of the deposit to be paid via a
post-dated cheque In banking, a post-dated cheque is a cheque written by the drawer (payer) for a date in the future.
Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country. A Canadian bank, for example, is not ...
.
The post dated cheque later
dishonoured, and as a result, Pendergrast cancelled the contract and sued Chapman for the NZ$40,000 unpaid deposit. Chapman defended the claim that under the section 8(3) of the Contractual Remedies Act, once a contract is cancelled, neither party is obliged to perform the contract any further.
Held
The court ruled that the Act only stopped future obligations, not obligations that had already fallen due, such as the deposit here. Chapman was ruled liable to pay the deposit.
References
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High Court of New Zealand cases
New Zealand contract case law
1987 in New Zealand law
1987 in case law