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Widespan Buildings Auckland North Limited v Arden [2016] NZDC 21842

Published 03 March 2017

Entitlement to cancel contract — Contractual Remedies Act 1979, s 7 — Consumer Guarantees Act 1993 — Oxborough v North Harbour Builders Limited [2002] 1 NZLR 145 — Banko de Portugal v Waterlow and Sons Limited [1932] AC 452. The issue was whether the defendant was entitled to cancel a contract with the defendant under s 7(4)(b)(ii) for breach of a term of that contract which substantially increased the burden of the cancelling party. The contract related to construction of a dwelling, and the conduct which induced the cancellation was the quality of the work involved which failed to meet compliance on 11 counts according to a District Council report. The Judge determined that the breach was substantial and due to uncertainty regarding the plaintiff's remedial work cancellation was justified. The plaintiff's claim of betterment following the defendant's remedial actions was dismissed in light of "Banko". An award of $15,000 general damages for distress, inconvenience and financial difficulties was awarded. Judgment Date: 9 November 2016.

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