Publications
Terminating a contract
Bell Gully partner Alan Ringwood considers two recent decisions on termination of contracts.
The first concerns the Gore District Council and Power Co and their respective predecessors who entered into a deed for supply of the council's electricity. The deed was to "...be binding upon the Board and Council for all time hereafter." The judge upheld Power Co's claim that it could terminate the agreement.
The second concerns BP Oil and BA Motors and the termination provisions of a written supply agreement with a specified end date. Even though this date had passed, BP argued 12 months' notice was still required. Justice Hammond applied contra proferentem ("against the buyer") and limited BP's claim for loss of profits.
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This article was first published in the New Zealand Law Journal, June 1996, 204.
Disclaimer
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
