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Revision as of 19:09, 31 May 2020
This article needs more links to other articles to help integrate it into the encyclopedia. (September 2015) |
Simanke v Liu | |
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Court | High Court of New Zealand |
Full case name | Simanke v Liu |
Citation(s) | (1994) 2 NZ ConvC 191,888 |
Court membership | |
Judge(s) sitting | Henry J |
Simanke v Liu (1994) 2 NZ ConvC 191,888 is a cited case in New Zealand regarding cancellation of a contract under the Contractual Remedies Act, any deposit in excess of a customary deposit, in this case 10%, is refundable to the purchaser.[1]
Background
Simanke agreed to sell a property to Liu for $650,000, with the sales agreement stating that a deposit of $300,000 be payable within 14 days.
The contract was later cancelled, and Siminake sued for the $300,000 deposit. Liu defended the claim by saying as under the Contractual Remedies At 1979, once a contract is cancelled, no party is obliged to perform any further on a contract. Simanke argued that the Act still requires the deposit to be paid.
Held
The court ruled that in New Zealand, the customary deposit is 10%, meaning in this case, $300,000 was not in the nature of a deposit, and so was not enforceable here. Furthermore, Simanke's claim was not helped either by the fact that the sales agreement had limited the forfeiture of deposit to be only 10% anyway. Simanke's claim was dismissed.
References
- ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. 362. ISBN 0-86472-555-8.