The Contractual Remedies Act of 1979: An Overview

1. Introduction

In New Zealand, the law of contract is governed by the Contractual Remedies Act of 1979 (the “Act”). The Act provides for various remedies that may be available to a party to a contract who has been induced to enter into the contract by means of a misrepresentation. In particular, section 4 of the Act covers statements made during contract negotiations.

2. The Contractual Remedies Act in New Zealand

2.1 Section 4: Statements Made During Contract Negotiations

Section 4 of the Act provides that, where a person has entered into a contract as a result of a misrepresentation made by another person during contract negotiations, the court may award damages to the party who has been induced to enter into the contract. The amount of damages that may be awarded will depend on the nature of the misrepresentation and the loss suffered by the party as a result of entering into the contract.

2. 2 False Representation

A false representation is a statement that is not true and is made with the intention of inducing another person to enter into a contract. A false representation may be made orally or in writing. If a false representation is made orally, it must be proved by evidence that is admissible in court. If a false representation is made in writing, it need not be proved by evidence that is admissible in court.

2. 3 Warranty

A warranty is a promise made by one party to another party that certain things will be true or will happen. A warranty may be express or implied. An express warranty is a warranty that is expressly stated in the contract. An implied warranty is a warranty that is not expressly stated in the contract but which is implied by law.

2. 4 Seat Restrictions

Seat restrictions are contractual terms which restrict the right of a party to sell,transfer or otherwise dispose of their interest in a contract to another person. Seat restrictions are common in franchise agreements and other types of commercial contracts.

3. Conclusion

The Contractual Remedies Act of 1979 provides for various remedies that may be available to a party to a contract who has been induced to enter into the contract by means of a misrepresentation. In particular, section 4 of the Act covers statements made during contract negotiations.

FAQ

The Contractual Remedies Act sets out the different types of remedies available to a party who has breached a contract.

The different types of remedies available under the Act include damages, Specific Performance, and Injunctive Relief.

You determine which remedy is appropriate in a particular case by looking at the nature of the breach and the damages that have been caused.

There are some limitations on the availability of remedies under the Act, such as when a contract provides for a different remedy or when the breach is not material.