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Building Act 2004

Consumer rights and remedies in relation to residential building work - Remedies for breach of implied warranty

362P: Rules applying to cancellation

You could also call this:

"How to cancel a building contract and what you need to do"

If you cancel a contract under section 362M(3)(b) or 362N(2)(b), it does not take effect until you tell the building contractor about it. You can tell them by saying something or by doing something that shows you want to cancel the contract. If you cannot talk to the building contractor, you can show your intention to cancel the contract in a way that makes sense in the situation. When you cancel a contract, you can use words or actions to show you want to cancel, or you can use both. You do not need to use special words, as long as the building contractor knows you want to cancel. If it is possible to talk to the building contractor, you might need to give them written notice that you want to cancel the contract, depending on what your contract says. Some rules from the Contract and Commercial Law Act 2017, sections 42 to 48, also apply when you cancel a contract under section 362M(3)(b) or 362N(2)(b).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371138.

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Part 4AConsumer rights and remedies in relation to residential building work
Remedies for breach of implied warranty

362PRules applying to cancellation

  1. The cancellation of a contract under section 362M(3)(b) or 362N(2)(b) does not take effect—

  2. before the time at which the cancellation is made known to the building contractor; or
    1. where it is not reasonably practicable to communicate with the building contractor, before the time at which the client indicates, by means that are reasonable in the circumstances, the client's intention to cancel the contract.

      1. Subject to subsection (3), the cancellation may be made known by words, or by conduct indicating an intention to cancel, or both, and it is not necessary to use any particular form of words, so long as the intention to cancel is made known.

      2. Where it is reasonably practicable to communicate with the building contractor, subsection (2) takes effect subject to any provision in the contract requiring notice of cancellation in writing.

      3. Sections 42 to 48 of the Contract and Commercial Law Act 2017 apply, with all necessary modifications, to the cancellation of a contract under section 362M(3)(b) or 362N(2)(b).

      Notes
      • Section 362P: inserted, on , by section 56 of the Building Amendment Act 2013 (2013 No 100).
      • Section 362P(4): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).