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Contract and Commercial Law Act 2017

Contracts legislation - Contractual remedies - Cancellation

36: Party may cancel contract if another party repudiates it

You could also call this:

“You can end a deal if someone else shows they won't do their part”

You can end a contract if someone else involved in it shows they don’t want to do their part. This can happen if they say or do something that makes it clear they won’t do what they promised in the contract. For example, if they tell you they won’t finish the job they agreed to do, or if their actions show they won’t complete their responsibilities. Remember, there are other rules about ending contracts that you need to consider too. This isn’t the only thing to think about when deciding to end a contract.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844102.

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35: Damages for misrepresentation, or

"When someone lies to you about a deal, you can get money back"

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37: Party may cancel contract if induced to enter into it by misrepresentation or if term is or will be breached, or

"You can stop a deal if someone fooled you or breaks the rules"

Part 2 Contracts legislation
Contractual remedies: Cancellation

36Party may cancel contract if another party repudiates it

  1. A party to a contract may cancel the contract if, by words or conduct, another party (B) repudiates the contract by making it clear that B does not intend to—

  2. perform B’s obligations under the contract; or
    1. complete the performance of B’s obligations under the contract.

      1. This section is subject to the rest of this subpart.

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