Markholm Construction Co Ltd v Wellington City Council

Markholm Construction Co Ltd v Wellington City Council
CourtHigh Court of New Zealand
Full case name Markholm Construction Co Ltd (First Plaintiff) & Mark William Stephen Markholm (Second Plaintiff)v Wellington City Council
Decided6 August 1984
Citation[1985] 2 NZLR 520
TranscriptHigh Court judgment
Court membership
Judge sittingJeffries J

Markholm Construction Co Ltd v Wellington City Council [1985] 2 NZLR 520 is a cited case in New Zealand regarding contract formation.[1][2]

Background

The Wellington City Council had advertised sections for sale by ballot in a new subdivision. After finding this ballot heavily oversubscribed, the council realised that the sections had been significantly undervalued.

As a result, the council refused to go through with the ballot, and cancelled the ballot.

The Markholm's sued the council for specific performance for the contract - to go through with the sale of the sections by ballot.

Held

The court ruled it was a legally binding contract. However, the court refused to order specific performance given the odds of winning in the ballot, and damages instead were awarded.

References

  1. ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. 220. ISBN 0-86472-555-8.
  2. ^ Walker, Campbell (2004). Butterworths Student Companion Contract (4th ed.). LexisNexis. pp. 6–7. ISBN 0-408-71770-X.
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