You cannot cancel a contract if you have agreed to it even after knowing about a problem. If someone breaks the contract, lies to you, or refuses to do what they promised, but you still say you want to go ahead with the contract, you can't change your mind later and try to cancel it. This is like if your friend breaks a promise, but you tell them it's okay and you still want to be friends - you can't then decide later that you're not friends anymore because of that broken promise.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844105.
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"
39: Parties with substantially same interest, or
"Court decides if you can cancel a contract when someone else misbehaves"
A party is not entitled to cancel the contract if, with full knowledge of the repudiation, misrepresentation, or breach, the party has affirmed the contract.
