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Contract and Commercial Law Act 2017

Contracts legislation - Contractual remedies - Assignees

55: Damages may not exceed value of performance of assigned contract

You could also call this:

“You can't be charged more than what you'd get from a contract someone gave you”

If someone gives their contract to you, there’s a limit on how much money you might have to pay if something goes wrong. You won’t have to pay more than the value of what you’re supposed to get from the contract. This is to protect you from having to pay too much.

However, this rule can be changed. If you agree to pay more, or if the contract itself says you might have to pay more, then you might end up owing more money. But if you don’t agree to anything different, and the contract doesn’t say otherwise, then this limit on how much you might have to pay will apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844129.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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54: Remedies enforceable by or against assignee, or

"What happens when someone gives you their contract rights and duties"

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56: Assignee indemnified by assignor, or

"The person giving you a contract must pay for mistakes they made or information they didn't share"

Part 2 Contracts legislation
Contractual remedies: Assignees

55Damages may not exceed value of performance of assigned contract

  1. The assignee is not liable in damages, whether by way of set-off, counterclaim, or otherwise, for a sum exceeding the value of the performance of the assigned contract to which the assignee is entitled because of the assignment.

  2. This section applies except to the extent that it is otherwise agreed by the assignee or provided in the assigned contract.

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