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Contract and Commercial Law Act 2017
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Contract and Commercial Law Act 2017
Public Act
2017 No 5
Date of assent
1 March 2017
Commencement
see section 2
Contents
1
Title
2
Commencement
Part 1
Preliminary provisions
3
Purpose
4
Revision Act
5
Overview of this Act
6
Transitional, savings, and related provisions
7
Status of examples
8
Act binds the Crown
Part 2
Contracts legislation
9
Interpretation
Subpart 1—Contractual privity
10
Purpose
11
Interpretation
12
Deed or contract for benefit of person who is not party to deed or contract
13
Section 12 does not apply if no intention to create obligation enforceable by beneficiary
14
Variation or discharge of promise may require beneficiary’s consent
15
Variation or discharge by agreement or in accordance with express provision
16
Court may authorise variation or discharge
17
Enforcement by beneficiary
18
Availability of defences
19
This subpart does not apply to promises, contracts, or deeds governed by foreign law
20
Savings
Subpart 2—Contractual mistakes
21
Purpose of this subpart
22
This subpart to be code
23
Interpretation
24
Relief may be granted if mistake by one party is known to another party or is common or mutual
25
Mistake does not include mistake in interpretation of contract
26
Decision to enter into contract not influenced by mistake if party aware of it
27
Mistake caused by party seeking relief
28
Nature of relief
29
Court may grant relief to person claiming through or under party
30
Persons who may apply
31
Rights of third persons not affected
32
This subpart does not apply to contracts governed by foreign law
Subpart 3—Contractual remedies
33
Meaning of cancel
34
Remedy provided in contract
Damages for misrepresentation
35
Damages for misrepresentation
Cancellation
36
Party may cancel contract if another party repudiates it
37
Party may cancel contract if induced to enter into it by misrepresentation or if term is or will be breached
38
No cancellation if contract is affirmed
39
Parties with substantially same interest
40
Sections 36 to 39 have effect in place of rules of common law and of equity
41
When cancellation may take effect
42
Effect of cancellation
Power of court to grant relief
43
Power of court to grant relief
44
Order for relief may be subject to terms and conditions
45
Matters court must have regard to
46
Protection of purchaser of property in good faith and for valuable consideration
47
Party who has altered position
48
Persons who may apply
49
Recovery of damages
Provisions purporting to prevent court inquiry
50
Statement, promise, or undertaking during negotiations
51
Authority for making or giving statement, promise, or undertaking
52
Contracts for sale of goods
53
Proceeding before Disputes Tribunal
Assignees
54
Remedies enforceable by or against assignee
55
Damages may not exceed value of performance of assigned contract
56
Assignee indemnified by assignor
57
Other provisions relating to assignees
Miscellaneous provisions
58
This subpart does not apply to contracts governed by foreign law
59
Savings
Subpart 4—Frustrated contracts
60
Application
Money paid or payable
61
Money paid may be recovered and money payable ceases to be payable
62
Court may allow party who has incurred expenses to retain or recover money
Other valuable benefits
63
Sum may be recovered if party has obtained valuable benefit
64
Benefit may be treated as being obtained
Expenses
65
Estimates of expenses
Insurance
66
Money payable under contract of insurance
Other provisions relating to application
67
Court must give effect to provision in contract
68
Court must treat performed part of contract that can be properly severed as separate contract
69
This subpart does not apply in certain circumstances
Subpart 5—Illegal contracts
70
Interpretation
71
Illegal contract defined
72
Breach of enactment
Illegal contracts have no effect
73
Illegal contracts have no effect
74
Protection of persons who acquire property in good faith and without notice
Court may grant relief
75
Who may be granted relief
76
Court may grant relief
77
Order may be subject to terms and conditions
78
Matters court must have regard to
79
Court must not grant relief if not in public interest
80
Person acting with knowledge of facts or law giving rise to illegality
81
Persons who may apply
82
Restriction on granting relief otherwise than in accordance with this subpart
Restraints of trade
83
Restraints of trade
84
Law relating to restraint of trade and to ouster of jurisdiction not affected
Subpart 6—Minors’ contracts
85
Interpretation
Contractual capacity of minors
86
Contracts unenforceable against minors but otherwise have effect
87
Court may inquire into fairness and reasonableness of contract
88
Court orders where contract was fair and reasonable
89
Court orders where contract was not fair and reasonable
90
Matters court must have regard to
91
Further provisions relating to application of sections 86 to 90
Special rules for contracts of service and life insurance contracts
92
Contracts of service and life insurance contracts have effect as if minor were of full age
93
Court may make orders about unconscionable, harsh, or oppressive contract of service or life insurance contract
94
Sections 92 and 93 do not apply in certain circumstances
Compensation or restitution
95
Compensation or restitution
Other provisions relating to applications and orders
96
Applications under sections 87 to 89 or section 93
97
Terms and conditions of orders
Entering into contract with District Court’s approval
98
Minor may enter into contract with approval of District Court
99
Persons who may apply
100
Referral of application
101
Contracts relating to property held on trust
Guarantees and indemnities
102
Guarantees and indemnities
Compromise or settlement of claims by minors
103
Application
104
Claim that is not subject of proceeding
105
Claim that has become subject of proceeding
106
Who may apply for approval
107
Court may refuse or grant approval
Court directed trust for minor
108
Money or damages to be held on trust
109
Payment on minor reaching 18 years or marrying or entering into civil union or de facto relationship
Other matters relating to sections 103 to 109
110
Sections 103 to 109 do not limit or affect certain other provisions
111
Variation of certain orders
112
Order may be made on court’s own motion or on application
Jurisdiction
113
Jurisdiction of District Court
114
Jurisdiction of Disputes Tribunal
Subpart to be code
115
This subpart to be code
Agreements relating to trusts
116
Effect of this subpart on trust
117
Agreement to extinguish or vary trust may be approved
Subpart 7—Stipulations not of essence of contracts
118
Stipulations not of essence of contracts
Part 3
Sale of goods
119
Interpretation
Subpart 1—Formation of contract
Contract of sale
120
Contract of sale of goods
121
Contracts of sale may be between one part-owner and another
122
Contracts of sale may be absolute or conditional
123
Sale and agreement to sell
124
Capacity to buy and sell
Contractual formalities
125
How contract of sale is made
Subject matter of contract
126
Existing or future goods
127
Contract void if goods have perished at time when contract is made
128
Contract void if goods perish before sale but after agreement to sell
Price
129
Fixing contract price
130
Agreement to sell at valuation
Conditions and warranties
131
Stipulations about time
132
Conditions and warranties
133
Breach of condition to be fulfilled by seller
134
Impossibility or other excuse
135
Implied condition and warranties as to title and quiet possession
136
Sale by description
137
Implied conditions or warranties as to quality or fitness
138
Implied condition that goods are reasonably fit for purpose
139
Implied condition that goods are of merchantable quality
140
Implied warranty or condition by usage of trade
141
Express warranty or condition
Sale by sample
142
Sale by sample
Subpart 2—Effects of contract
Transfer of property between seller and buyer
143
Goods must be ascertained
144
Property passes when intended to pass
145
Ascertaining parties’ intention
146
Rules for ascertaining parties’ intention
147
Reservation of right of disposal
148
Risk passes with property unless otherwise agreed
Transfer of title
149
Sale by person who is not owner
150
Market overt
151
Sale under voidable title
152
Revesting of property in stolen goods on conviction of offender
153
Seller in possession after sale
154
Buyer in possession after sale
155
Effect of writs of execution
Subpart 3—Performance of contract
156
Duties of seller and buyer
157
Payment and delivery are concurrent conditions
Rules about delivery
158
Determining whether buyer to take possession of goods or seller to send goods
159
Place of delivery
160
Goods must be sent within reasonable time if no time is fixed
161
Goods in possession of third person
162
Demand or tender of delivery must be at reasonable hour
163
Seller must bear expenses of putting goods into deliverable state
164
Delivery of wrong quantity or of mixed goods
165
Buyer not bound to accept delivery by instalments
166
Instalment deliveries: breach of contract
167
Delivery to carrier
168
Risk where goods are delivered at place other than place where goods are sold
169
Buyer’s right to examine goods
170
Acceptance of goods
171
Buyer not bound to return rejected goods
172
Liability of buyer for neglecting or refusing to take delivery of goods
Subpart 4—Rights of unpaid seller against goods
173
Unpaid seller defined
174
Unpaid seller’s rights
Unpaid seller’s lien
175
Unpaid seller’s lien
176
Part delivery
177
When unpaid seller loses lien
Stopping goods in transit
178
Right to stop goods in transit
179
Duration of transit
180
Goods delivered to ship chartered by buyer
181
Part delivery
182
How right is exercised
183
Notice of seller’s claim
184
Redelivery of goods
Resale by buyer or seller
185
Effect of subsale or pledge by buyer
186
Transfer of document of title to person in good faith and for valuable consideration
187
Sale not generally rescinded by lien or stopping goods in transit
188
Buyer’s title on resale
189
Resale in case of perishable goods or notice of intention to resell
190
Express power of sale
Subpart 5—Remedies for breach of contract
Remedies of seller
191
Claim for price
192
Damages for non-acceptance
Remedies of buyer
193
Damages for non-delivery
194
Specific performance
195
Remedy for breach of warranty
196
Interest and special damages
Subpart 6—Supplementary matters
197
Exclusion of implied terms and conditions
198
Exclusion where Consumer Guarantees Act 1993 applies
199
Reasonable price and reasonable time are questions of fact
200
Rights and duties enforceable by proceeding
201
Savings
Subpart 7—United Nations Convention on Contracts for the International Sale of Goods
202
Purpose
203
Interpretation
204
Convention to have force of law
205
Convention to be code
206
Certificates about Contracting States
Part 4
Electronic transactions
Subpart 1—Preliminary provisions
207
Purpose
208
Overview
209
Interpretation
210
Further provision relating to interpretation
Subpart 2—Improving certainty in relation to electronic information and electronic communications
Validity
211
Validity of information
Default rules about dispatch and receipt of electronic communications
212
When default rules in sections 213 to 216 apply
213
Time of dispatch
214
Time of receipt
215
Place of dispatch
216
Place of receipt
217
Time of communication of acceptance of offer
Subpart 3—Application of legal requirements to electronic transactions
Preliminary provisions
218
When subpart applies
219
When legal requirement can be met by electronic means
220
Consent to use of electronic technology
221
When integrity of information maintained
Legal requirement: writing
222
Legal requirement that information be in writing
223
Legal requirement to record information in writing
224
Legal requirement to give information in writing
225
Legal requirements relating to layout and format of certain information and writing materials
Legal requirement: signatures
226
Legal requirement for signature
227
Legal requirement that signature or seal be witnessed
228
Presumption about reliability of electronic signatures
Legal requirement: retention
229
Legal requirement to retain document or information that is in paper or other non-electronic form
230
Legal requirement to retain information that is in electronic form
231
Extra conditions for electronic communications
Legal requirement: provision and production of, and access to, information
232
Legal requirement to provide or produce information that is in paper or other non-electronic form
233
Legal requirement to provide or produce information that is in electronic form
234
Legal requirement to provide access to information that is in paper or other non-electronic form
235
Legal requirement to provide access to information that is in electronic form
Legal requirement: originals
236
Originals
Miscellaneous
237
Legal requirement relating to content of information
238
Copyright
239
Regulations and Order in Council to amend Schedule 5
240
Authority to prescribe electronic forms and requirements for using electronic forms
Part 5
Other commercial matters
Subpart 1—Carriage of goods
Overview
241
Overview
Application and effect of subpart
242
This subpart applies to carriage of goods by carrier under contract
243
This subpart does not apply to international carriage, to postal services, or in certain other cases
244
Other remedies affected
245
Contracting out permitted for some matters
Interpretation
246
Interpretation
247
Meaning of unit of goods
Kinds of contract of carriage and effect on liability of parties
248
Liability depends on kind of contract of carriage
249
Particular kind of contract of carriage is matter for agreement subject to meeting requirements for that kind
250
Requirements for contract for carriage at owner’s risk
251
Requirements for contract for carriage at declared value risk
252
Requirements for contract for carriage on declared terms
253
Difference between amounts charged must be fair and reasonable for contract at owner’s risk or declared value risk
254
Contract between contracting carrier and actual carrier or between actual carriers
Liability of contracting carriers
255
Application of sections 256 to 258
256
Liability of contracting carrier
257
When responsibility for goods begins
258
When responsibility for goods ends
Limits on carrier liability for contracts of carriage at limited carrier’s risk or declared value risk
259
Carrier’s liability limited to $2,000 for each unit of goods or to declared value
260
Carrier not liable in certain circumstances
Liability of actual carrier to contracting carrier
261
Application of provisions on liability of actual carrier to contracting carrier
262
Liability where 1 actual carrier is involved
263
Liability where more than 1 actual carrier is involved
264
When actual carriers are jointly responsible or separately responsible for goods
265
Provisions relating to joint liability of actual carriers
Other provisions relating to liability of carriers
266
Rights of contracting party where contracting carrier insolvent or cannot be found
267
Liquidator or assignee in bankruptcy holds money on trust
Liability of carriers for baggage
268
Special rules relating to liability of carrier in respect of baggage
269
Other rules relating to hand baggage
Liability under contracts of successive carriage
270
Contracts of successive carriage by air
271
When successive carriers are jointly responsible or separately responsible for goods
Liability of employees
272
Liability of carrier’s employee
Warranty by contracting parties
273
Contracting party to warrant condition of goods and compliance with enactments
Proceedings against carriers
274
Notice of claim against contracting carrier must be given within 30 days
275
Notice of claim against actual carrier must be given within 10 days
276
No notice required if carrier is or ought to be aware of damage or loss or in case of fraud
277
Non-notified proceeding may be brought with carrier’s consent or leave of court
278
Limitation on proceedings against carriers for loss of goods
279
Limitation on proceedings against carriers for damage to or partial loss of goods
280
Proceeding may be brought after limitation period with carrier’s consent or leave of court
281
Proceeding by consignee if not contracting party
Rights of carriers
282
Contracting out permitted on rights of carriers
283
Right to sue for freight
284
Proceeding for recovery of freight
285
Carrier’s lien
286
Notice of carrier’s claim
287
Carrier may store goods
288
Sale of goods by public auction
289
Storage and disposal of unclaimed or rejected goods
290
Disposal of perishable goods
291
Disposal of dangerous goods
292
Liability of carrier extinguished in respect of sale or disposal of goods
Miscellaneous provisions
293
Common carrier of goods abolished
294
Proceedings against New Zealand agents of overseas carriers
295
Certain other Acts not affected
Subpart 2—Mercantile agents
296
Interpretation
Sales, pledges, and other dispositions by mercantile agents
297
Sale, pledge, or other disposition by agent in possession with owner’s consent is valid
298
Buyer, etc, has notice of lack of authority if goods subject to perfected security interest
299
Effect of withdrawal or expiry of owner’s consent
300
Provisions relating to consent
301
Effect of pledges of documents of title
302
Pledge of goods as security for existing debt or liability
303
Rights acquired by exchange of goods or documents
304
Agreements through employees or other authorised persons
305
Consignee’s lien
306
Effect of transfer of document of title to goods on vendor’s lien and right of stopping goods in transit
Miscellaneous provisions
307
Mode of transferring documents
308
Saving of rights of true owner
309
Common law powers of mercantile agent
Subpart 3—Bills of lading, sea waybills, and ship’s delivery orders
Application
310
Application of this subpart
311
This subpart applies without prejudice to application of Hague Rules
Interpretation
312
Interpretation
313
Goods that cease to exist or cannot be identified
Rights under shipping documents
314
Holder of bill of lading or person to whom delivery is to be made has rights under contract of carriage
315
Rights where possession of bill of lading no longer gives right to possession of goods
316
Rights in relation to ship’s delivery order
317
Rights may be exercised for benefit of person who suffers loss or damage
318
Transfer extinguishes certain rights
Liabilities under shipping documents
319
Person in whom rights are vested becomes subject to liabilities
320
Liabilities exclude liabilities in respect of goods to which ship’s delivery order does not relate
321
Right of stopping goods in transit, or claims for freight, not affected
322
Bill of lading in hands of shipper, consignee, or endorsee is conclusive evidence as against master or other signer of bill
323
Regulations relating to network or other information technology
Special provisions about received for shipment bills of lading
324
Special provisions about received for shipment bills of lading
Subpart 4—Power for shipowner to enter and land goods, and lien for freight
325
Interpretation
326
Shipowner may enter and land goods in default of entry and landing by owner of goods
327
Place for landing goods
328
Owner who is ready and offers to land or take delivery of goods
329
Landing of goods at wharf where ship is discharged for purpose of sorting goods
330
Requirement for notice in certain circumstances
331
Continuation of lien for freight if shipowner gives notice
332
Discharge of lien on production of receipt and delivery of copy of receipt or release
333
Discharge of lien on deposit with warehouse owner
334
Right of wharf owner or warehouse owner, if no notice is given, to pay deposit to shipowner
335
Course to be taken if notice to retain is given
336
Wharf owner or warehouse owner may sell goods by public auction after 90 days
337
Notices of sale to be given
338
How money arising from sale is to be applied
339
Wharf owner’s or warehouse owner’s rent and expenses
340
Wharf owner’s or warehouse owner’s protection
Subpart 5—Lien for work done
341
Power of sale under lien for work done
342
Notice of sale to be given
343
How notice of sale is given to owner of goods
344
How money arising from sale is to be applied
Part 6
Repeal of revised Acts, consequential amendments, and miscellaneous provisions
345
Repeal of revised Acts
346
Revocation
347
Amendments to other enactments
Schedule 1
Transitional, savings, and related provisions
Schedule 2
Minor amendments to clarify Parliament’s intent or reconcile inconsistencies
Schedule 3
Comparative table
Schedule 4
United Nations Convention on Contracts for the International Sale of Goods
Schedule 5
Enactments and provisions excluded from subpart 3 of Part 4
Schedule 6
Consequential amendments
Legislative history
Administrative information
The Parliament of New Zealand enacts as follows: