The Background To A Contract Can Be Just As Important As The Terms Of That Contract
Created: Saturday, 15 February 2014 03:06
In a recent Supreme Court decision, Planet Kids Limited ("PK") v Auckland Council ("Council"), High Court and subsequent Court of Appeal decisions have been overturned. The question was whether a Public Works Act 1981 ("PWA") agreement between the parties was frustrated by the inability of PK to exactly comply with some of the terms of that settlement agreement and accordingly should be terminated.
The Supreme Court looked at the settlement arrangements between the parties in a broad manner rather than relying on strict interpretation of the contract provisions themselves and made it clear that the compensation provision in the PWA were not relevant as an agreement as to compensation had been entered into by those parties.
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